SAN DIEGO, CA / ACCESSWIRE / January 23, 2017 / The Shareholders Foundation, Inc. announces that a lawsuit is pending for certain investors in shares of Resource Capital Corp. (NYSE: RSO) in New York over alleged Securities Laws Violations by Resource Capital.
Investors, who purchased shares of Resource Capital Corp. (NYSE: RSO) prior to November 2012 and currently hold any of those (NYSE: RSO) shares, should contact the Shareholders Foundation at [email protected] or call +1(858) 779 - 1554.
In September 2015 a lawsuit was filed for certain investors in (NYSE: RSO) shares over alleged securities law violations by Resource Capital Corp. The plaintiff claimed that the defendants issued allegedly materially false and misleading statements and/or failed to disclose material information regarding the risk of Resource Capital’s commercial loans portfolio and its processes and controls for assessing the quality of its portfolio.
In February 2016 an amended complaint was filed. The plaintiff alleges that Resource Capital and certain of its senior executives deceived public investors by failing to alert them of a particularly risky and dangerous loan within their portfolio. The plaintiff says the loan in question was a mezzanine loan secured by a number of luxury hotels. The plaintiff alleges that three of the hotels serving as collateral were located in Puerto Rico and, as time progressed, these three hotels came to be the only three assets securing the above stated mezzanine Loan and that the defendants never disclosed this to investors.
Furthermore, the plaintiff claims that without regard to the Puerto Rican economic crisis, and despite the Company's recognition that the value of real estate debt is sensitive to local economic trends, Resource Capital went years without warning investors of the imminent need to write-down the above stated mezzanine Loan. The plaintiff says it was not until on August 4, 2015, when Resource Capital Corp announced its financial results for the quarter ended June 30, 2015 and disclosed a Generally Accepted Accounting Principles net loss of $31 million during the quarter due to the company's recording of an allowance for loan loss on the above stated mezzanine loan position of $41.1 million.
In April 2016 the defendants filed their motion to dismiss the amended complaint, but in October 2016 the court denied that motion.
Those who purchased Resource Capital Corp. (NYSE: RSO) shares have certain options and should contact the Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
CONTACT:
Shareholders Foundation, Inc.
Michael Daniels
+1 (858) 779-1554
[email protected]
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
SOURCE: Shareholders Foundation, Inc.