The Gross Law Firm notifies investors that a class action has commenced in the United States District Court for the Central District of California on behalf of shareholders of Colony Credit Real Estate, Inc. who purchased or otherwise acquired the common stock of Colony Credit pursuant and/or traceable to the Company’s false and/or misleading Registration Statement and Prospectus issued in connection with the combination of Colony NorthStar, Inc. and NorthStar Real Estate Income Trust, Inc. and NorthStar Real Estate Income II, Inc. on or about February 1, 2018 (the "Merger").
The filed complaint alleges that defendants made materially false and/or misleading statements and/or failed to disclose that: (i) the credit quality of certain of the Company’s assets had deteriorated prior to the Merger, and were continuing to deteriorate at the time of the Merger; (ii) certain of the Company’s loans, including four loans of approximately $261 million related to a New York hotel, were substantially impaired, there was insufficient collateral to secure the loans, and it was unlikely that the loans would be repaid; (iii) as a result, the valuation attributed to certain of the Company’s assets was overstated; (iv) certain of the assets contributed as part of the Merger were of substantially lower value than reflected in the Company’s financial statements and the Registration Statement; (v) as a result, the Company’s financial condition, including its book value, was materially overstated; and (vi) as a result of the foregoing, the positive statements in the Registration Statement about the Company’s business, operations, and prospect were materially misleading and/or lacked a reasonable basis.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until November 9, 2020 to request that the court appoint them lead plaintiff.
To receive more information, please fill out the form.