The Law Offices of Frank R. Cruz announces an investigation on behalf of Colony Capital, Inc. ("Colony" or the "Company") (NYSE: CLNY) investors concerning the Company and its officers’ possible violations of federal securities laws.
If you are a shareholder who suffered a loss, click here to participate.
On November 8, 2019, the Company revealed its financial results for the third quarter of 2019. Among other results, Colony reported a GAAP net loss of $555 million, or $1.15 per share, which "notably included reductions of goodwill, real estate and provision for loan losses totaling $540.3 million . . . of which $387.0 million was attributable to the reduction of goodwill primarily as a result of the pending sale of the Company's industrial investment management business and related real estate portfolio, and the decrease in management fees from Colony Credit Real Estate, Inc. resulting from impairments related to its portfolio bifurcation."
On this news, the Company’s share price fell $0.48 per share, or over 8%, to close at $5.00 per share on November 8, 2019.
Then, on May 8, 2020, the Company issued a press release revealing its financial and operating results for the first quarter of 2020. In the press release, the Company reported that its portfolio companies had defaulted on $3.2 billion of debt secured by hotels and healthcare-related properties and that Colony had received a notice of acceleration covering $780 million of the defaulted debt.
On this news, the Company’s share price fell $0.08 per share, or over 3%, to close at $2.02 per share on May 8, 2020, thereby injuring investors.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased Colony securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.