SAN DIEGO–(BUSINESS WIRE)–The Class: Shareholder rights law firm Robbins LLP informs investors of a class action on behalf of all persons and entities that purchased or otherwise acquired Innovative Industrial Properties, Inc. (NYSE: IIPR) securities between May 7, 2020 and April 13, 2022, for violations of the Securities Exchange Act of 1934. Innovative Industrial Properties purports to be an internally-managed real estate investment trust (“REIT”) focused on the acquisition, ownership, and management of specialized industrial properties leased to experienced, state-licensed operators of their regulated state-licensed cannabis facilities.
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What is this Case About: Innovative Industrial Properties, Inc. (IIPR) Misrepresented its Business and Financial Prospects
According to the complaint, during the class period, defendants touted its rigorous underwriting standards and extensive experience in the cannabis industry. They also stated that the Company’s organization and operations qualify it to be taxed as a REIT for U.S federal income tax purposes. Notwithstanding, defendants failed to disclose that the value of the Company’s properties are significantly lower than represented and that the Company’s focus is to be a cannabis company lender rather than a REIT. Further, Innovative Industrial Properties’ top customers may not be able to continue making payments and the Company would face significant issues replacing those customers.
On April 14, 2022, market researcher Blue Orca Capital released a report describing the Company as “a marijuana bank masquerading as a REIT. IIPR’s model is to conduct sale-leaseback transactions with cannabis producers who are otherwise prohibited from borrowing money because of federal regulations.” The report further noted that “[u]nlike with other REITs, IIPR cannot expect to recover the lost income from defaulting tenants because it appears that the actual value of its properties are substantially below their carrying value on the IIPR’s balance sheet.”
On this news, the Company’s share price fell $13.76 per share, or 7.5%, to close at $169.68 per share on April 14, 2022.
Next Steps: If you acquired shares of Innovative Industrial Properties, Inc. (IIRP) between May 7, 2020 and April 13, 2022, you have until June 24, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Innovative Industrial Properties, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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