LOS ANGELES, CA / ACCESSWIRE / September 24, 2020 / The Schall Law Firm, a national shareholder rights litigation firm, announces the filing of a class action lawsuit against Colony Credit Real Estate, Inc. ("Colony Credit" or "the Company") (NYSE:CLNC) violations of the federal securities laws.
Investors who purchased the Company's shares pursuant and/or traceable to the Company's false and/or misleading Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with the combination of Colony NorthStar, Inc. ("Colony NorthStar") and NorthStar Real Estate Income Trust, Inc. ("NorthStar I") and NorthStar Real Estate Income II, Inc. ("NorthStar II") on or about February 1, 2018 (the "Merger"), are encouraged to contact the firm before November 9, 2020.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 1880 Century Park East, Suite 404, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Colony Credit's assets suffered from deteriorating credit quality in advance of the Merger. Four of the Company's loans, totaling $261 million and related to a New York Hotel, were not only impaired, but also suffered from insufficient collateral and were unlikely to be repaid. As a result, assets that were part of the Merger were materially overstated. Based on these facts, the Company's public statements and Registration Statement were false and materially misleading throughout the Merger period. When the market learned the truth about Colony Credit, investors suffered damages.
Join the case to recover your losses.
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
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SOURCE: The Schall Law Firm