Robbins Arroyo LLP: CBL & Associates Properties, Inc. (CBL) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against CBL & Associates Properties, Inc. (NYSE: CBL) in the U.S. District Court for the Eastern District of Tennessee. The complaint is brought on behalf of all purchasers of CBL & Associates securities between August 8, 2013 and May 24, 2016, for alleged violations of the Securities and Exchange Act of 1934 by CBL & Associates’ officers and directors. CBL & Associates is a public real estate investment trust that acquires, develops, and manages properties.
CBL & Associates Accused of Facilitating Insider Trading
According to the complaint, throughout the class period, CBL submitted several filings with the U.S. Securities and Exchange Commission (“SEC”) attesting that they contained no untrue statements or omissions and that they fairly represented the financial condition of CBL. However, the complaint alleges that CBL failed to disclose that certain of its employees may have provided material non-public information to Tennessee Senator Robert Corker, and that certain of its financing arrangements were obtained through fraud. In November 2015, political watchdog group Campaign for Accountability (“CFA”) filed a complaint with the SEC and the Senate Select Committee on Ethics alleging that Senator Corker, who has significant personal ties to CBL, may have engaged in insider trading of CBL. The CFA complaint noted that many of Corker’s trades closely preceded announcements by CBL leading to changes in the stock’s price, resulting in the senator making millions of dollars.
In addition, on May 24, 2016, the Wall Street Journal reported that CBL is under investigation by both the Federal Bureau of Investigation (“FBI”) and the SEC for allegedly inflating the company’s “rental income and occupancy rates for its properties when providing those figures to banks” when applying for financing arrangements. The report also noted that the FBI and SEC separately questioned the relationship between the company and Senator Corker. On this news, CBL’s stock fell by $0.86 per share, or nearly 9%, to close at $9.40 per share on May 25, 2016.
CBL & Associates Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
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