Did you lose money on investments in Innovative Industrial Properties? If so, please visit Innovative Industrial Properties, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or [email protected] to discuss your rights.
NEW YORK, May 17, 2022 — Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, reminds investors of the deadline to file a lead plaintiff motion in a securities class action lawsuit that has been filed on behalf of investors who purchased or acquired the securities of Innovative Industrial Properties, Inc. (“IIPR” or the “Company”) (NYSE: IIPR) between May 7, 2020 and April 13, 2022, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the District of New Jersey and alleges violations of the Securities Exchange Act of 1934.
IIPR 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 for their regulated state-licensed cannabis facilities.
In the Complaint, Plaintiff alleges that Defendants made false and/or misleading statements and/or failed to disclose: (1) that IIPR’s focus is to be a cannabis company lender rather than a REIT; (2) that the true values of IIPR’s properties are significantly lower than the Company represented; (3) existential issues plagued its top customers; and (4) that as a result, its top customers may not be able to continue making payments to IIPR, which would face significant issues replacing these customers.
On April 14, 2022, before market hours, market researcher Blue Orca Capital released a report on IIPR (the “Report”) that described 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 explained that “[i]n exchange for overpaying for properties from cannabis companies and funding the tenant improvements to build out the facilities, IIPR receives repayment of the loan in the form of long-term lease agreements at 11–14% yields. In effect, IIPR is less of a traditional REIT, and more of a marijuana bank, lending to cannabis companies who otherwise would not have access to the banking system to grow their businesses. This works so long as the tenants can repay their loans by continuing to make their lease payments, meaning IIPR’s business and valuation is contingent on high quality tenants”. The Report also stated that “unlike with other REITs, IIPR cannot expect to recover the lost income from defaulting tenants because it appears that the actual values of its properties are substantially below their carrying value on IIPR’s balance sheet.”
On this news, the price of IIPR stock fell more than 7% to close at $169.68 per share on April 14, 2022.
If you wish to serve as lead plaintiff, you must move the Court no later than June 24, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or acquired IIRP securities, and/or would like to discuss your legal rights and options please visit Innovative Industrial Properties, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or [email protected].
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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