The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Seritage Growth Properties (SRG) Investors

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Seritage Growth Properties (“Seritage” or the “Company”) (NYSE: SRG) securities between July 7, 2022 and May 10, 2024, inclusive (the “Class Period”). Seritage investors have until August 30, 2024 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On August 14, 2023, after the market closed, Seritage revealed that there was a “material weakness” in the Company’s internal control over financial reporting “due to a deficiency in the design of our control over the identification of impairment indicators for investments in real estate and documentation of evidence of review.” Moreover, the deficiency related “to the failure to identify potential indicators of impairment related to development projects in a timely manner.”

On this news, Seritage’s stock price fell $0.86, or 9.67%, to close at $8.03 per share on August 15, 2023, on unusually heavy trading volume.

Then, on May 10, 2024, after the market closed, Seritage released its first quarter 2024 financial results, revealing it was “adjusting [its] pricing projections for some of [its] assets.” As a result, the gross value of the Company’s portfolio of assets was reduced by at least $325 million.

On this news, Seritage’s stock price fell $2.54, or 27.3%, to close at $6.78 per share on May 13, 2024, on unusually heavy trading volume.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company lacked effective internal controls regarding the identification and review of impairment indicators for investments in real estate; (2) that, as a result, the Company had overstated the value and projected gross proceeds of certain real estate assets; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

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If you purchased Seritage securities during the Class Period, you may move the Court no later than August 30, 2024 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Seritage securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Seritage Growth Properties (SRG) Investors