The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District Court of New York on behalf of those who acquired Seritage Growth Properties (“Seritage” or the “Company”) (NYSE: SRG) securities during the period of July 7, 2022 to May 10, 2024 inclusive (“the Class Period”). Investors have until August 30, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

[Click here to learn more about the class action]

On August 14, 2023, after the market closed, Seritage revealed that there was a “material weakness” in the Company's internal control over financial reporting “due to a deficiency in the design of our control over the identification of impairment indicators for investments in real estate and documentation of evidence of review.” Moreover, the deficiency related “to the failure to identify potential indicators of impairment related to development projects in a timely manner.” On this news, the price of Seritage shares declined by $0.86 per share, or approximately 9.67%, from $8.89 on August 14, 2023 to close at $8.03 per share on August 15, 2023.

Then, on May 10, 2024, after the market closed, Seritage released its first quarter 2024 financial results, revealing it was “adjusting [its] pricing projections for some of [its] assets.” As a result, the gross value of the Company's portfolio of assets was reduced by at least $325 million. On this news, Seritage’s stock price declined $2.54 per share, or approximately 27.3%, from $9.32 on May 10, 2024 to close at $6.78 per share on May 13, 2024.

The lawsuit alleges that throughout the Class Period, Defendants failed to disclose to investors: (1) that the Company lacked effective internal controls regarding the identification and review of impairment indicators for investments in real estate; and (2) that, as a result, the Company had overstated the value and projected gross proceeds of certain real estate assets.

If you purchased or otherwise acquired Seritage securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.

Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.

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