Oklahoma City, OK (April 9, 2018) – On April 6, 2018, a securities class action lawsuit was filed in the United States District Court for the Central District of California against Colony NorthStar, Inc. (NYSE: CLNS). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is February 28, 2017 through March 1, 2018. More specifically, this litigation was filed because defendants made false and/or misleading statements and/or failed to disclose that: (1) Colony NorthStar’s Healthcare and Investment Management segments were performing worse than reported; and (2) as a result, Colony NorthStar’s public statements were materially false and misleading at all relevant times.
On February 28, 2017, the Company issued a press release entitled, “Colony NorthStar Announces Fourth Quarter 2016 Financial Results and Post-Merger Update,” cutting “Core [funds from operations] guidance for the year ending 2017 to a range of $1.40 to $1.58 per share” and announcing it did “not intend to provide updates to Core [funds from operations] guidance going forward.”
Following Colony NorthStar’s March 1, 2018 announcement of a goodwill impairment of $375 million, attributable to the company’s Investment Management segment and disappointing performance due to challenging industry conditions in healthcare. When the true details entered the market, the lawsuit claims that investors suffered damages.
Plaintiff seeks to recover damages on behalf of all Colony NorthStar, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Tuesday, June 5, 2018 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to email@example.com, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.