NEW YORK, Feb. 20, 2013
/PRNewswire/ -- Bernstein Liebhard LLP today announced that only
five days remain – until February 25,
2013 – to file a motion for lead plaintiff in a class action
against CommonWealth REIT ("CommonWealth" or the "Company").
The action against CommonWealth was recently commenced in the
United States District Court for the District of Massachusetts on behalf of a class (the
"Class") of purchasers of CommonWealth REIT (NYSE: CWH) common
shares between January 10, 2012 and
August 8, 2012 (the "Class
Period").
The complaint charges CommonWealth and certain of its officers
and directors with violations of the Securities Exchange Act of
1934. 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: (a) 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; (b) that existing tenants were demanding and
receiving significant concessions, which was further eroding the
Company's rental income; and (c) 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.
Plaintiffs seek to recover damages on behalf of all Class
members who invested in CommonWealth common shares during the Class
Period. If you invested in CommonWealth common shares as
described above during the Class Period, and either lost money on
the transaction or still hold the shares, you may wish to join in
this action to serve as lead plaintiff. In order to do so,
you must meet certain requirements set forth in the applicable law
and file appropriate papers no later than February 25, 2013.
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 Bernstein
Liebhard LLP, or other counsel of your choice, to serve as your
counsel in this action.
If you are interested in discussing your rights as a
CommonWealth shareholder and/or have information relating to the
matter, please contact Joseph R. Seidman,
Jr. at (877) 779-1414 or seidman@bernlieb.com.
Bernstein Liebhard LLP has pursued hundreds of securities,
consumer and shareholder rights cases and recovered over
$3 billion for its clients. It
has been named to The National Law Journal's "Plaintiffs'
Hot List" in each of the last ten years.
You can obtain a copy of the complaint from the clerk of the
court for the United States District Court for the District of
Massachusetts.
Bernstein Liebhard LLP
10 East 40th Street
New York, New York 10016
(877) 779-1414
www.bernlieb.com
ATTORNEY ADVERTISING. © 2013 Bernstein Liebhard LLP. The law
firm responsible for this advertisement is Bernstein Liebhard LLP,
10 East 40th Street, New York, New
York 10016, (212) 779-1414. The lawyer responsible for this
advertisement in the State of
Connecticut is Michael S. Bigin. Prior results do not
guarantee or predict a similar outcome with respect to any future
matter.
Contact Information
Joseph R. Seidman, Jr.
Bernstein Liebhard LLP
http://www.bernlieb.com
(212) 779-1414
seidman@bernlieb.com
SOURCE Bernstein Liebhard LLP