WAYNE, Pa., Jan. 8, 2013 /PRNewswire/ -- Ryan &
Maniskas, LLP (www.rmclasslaw.com/cases/cwh) announces that a class
action lawsuit has been filed in the United States District Court
for District of Massachusetts on
behalf of purchasers of CommonWealth REIT ("CommonWealth") (NYSE:
CWH) common shares during the period between January 10, 2012 and August 8, 2012 (the "Class Period").
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For more information regarding this class action suit, please
contact Ryan & Maniskas, LLP (Richard
A. Maniskas, Esquire) toll-free at (877) 316-3218 or by
email at rmaniskas@rmclasslaw.com or visit:
www.rmclasslaw.com/cases/cwh.
CommonWealth is a real estate investment trust, or REIT, which
primarily owns office and industrial properties located throughout
the United States. The complaint
alleges that, during the Class Period, defendants issued materially
false and misleading statements regarding the Company's financial
performance and future prospects. Specifically, defendants
misrepresented and/or failed to disclose the following adverse
facts: (1) that the Company was experiencing softness in the
leasing market as the number of leased office spaces, especially in
the Company's suburban office segment, was below internal
expectations; (2) that existing tenants were demanding and
receiving significant concessions, which was further eroding the
Company's rental income; and (3) as a result of the foregoing,
defendants lacked a reasonable basis for their positive statements
about the Company's leverage ratio, occupancy rate and dividend
payout.
On August 8, 2012, the Company
announced its financial results for the second quarter of 2012, the
period ended June 30, 2012. Following
the earnings press release, CommonWealth held a conference call
with analysts and investors. During the conference call, defendant
Adam D. Portnoy, the Company's
President and Managing Trustee, stated that CommonWealth would
likely reduce its dividend because, among other things, the
Company's cash available for distribution payout ratio had
increased to 108%. Moreover, the Company revealed that its
occupancy rate fell to 84.5%, as of June
30, compared to 84.8% on March
31. In reaction to these announcements, the price of
CommonWealth common shares fell $1.57
per share, or 9%, to close at $16.48
per share. The price of the Company's shares continued to decline
over the next two trading days to $15.67 per share as the market digested this
news.
On October 9, 2012, CommonWealth
announced its quarterly common and preferred dividends. In that
regard, defendants announced a common dividend of $0.25 per common share – a 50% reduction from the
Company's previous dividend rate.
If you are a member of the class, you may, no later than
February 25, 2013, request that the
Court appoint you as lead plaintiff of the class. A lead
plaintiff is a representative party that acts on behalf of other
class members in directing the litigation. In order to be
appointed lead plaintiff, the Court must determine that the class
member's claim is typical of the claims of other class members, and
that the class member will adequately represent the class.
Under certain circumstances, one or more class members may together
serve as "lead plaintiff." Your ability to share in any
recovery is not, however, affected by the decision whether or not
to serve as a lead plaintiff. You may retain Ryan &
Maniskas, LLP or other counsel of your choice, to serve as your
counsel in this action.
For more information about the case or to participate online,
please visit: www.rmclasslaw.com/cases/cwh or contact
Richard A. Maniskas, Esquire
toll-free at (877) 316-3218, or by e-mail at
rmaniskas@rmclasslaw.com. For more information about class
action cases in general or to learn more about Ryan &
Maniskas, LLP, please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation
firm. Ryan & Maniskas, LLP is devoted to protecting the
interests of individual and institutional investors in shareholder
actions in state and federal courts nationwide.
CONTACT:
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Ryan
& Maniskas, LLP
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Richard
A. Maniskas, Esquire
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995 Old
Eagle School Rd., Suite 311
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Wayne,
PA 19087
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877-316-3218
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www.rmclasslaw.com/cases/cwh
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rmaniskas@rmclasslaw.com
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SOURCE Ryan & Maniskas, LLP