Kaskela Law is currently litigating a shareholder class action lawsuit against CBL & Associates Properties, Inc. (“CBL” or the “Company”) (NYSE: CBL) on behalf of investors who purchased shares of the Company’s common stock between July 29, 2014 and March 26, 2019, inclusive (the “Class Period”). Case No. 2019-cv-00181-JRG-CHS (E.D. Tenn.).
CBL, through its two operating subsidiaries, is organized as a real estate investment trust (“REIT”). The shareholder class action complaint alleges that CBL issued a series of false and misleading statements to investors during the Class Period, and failed to appropriately disclose that the Company was the subject of a pending class action lawsuit alleging “that the Company and certain affiliated entities overcharged tenants at bulk metered malls for electricity.”
On March 26, 2019, CBL disclosed that it had agreed to settle the pending class action lawsuit and to “set aside a common fund with a monetary and non-monetary value of $90 million (the ‘Common Fund’) to be disbursed to class members in accordance with a formula to be agreed upon by the parties that is based upon aggregate damages of $60 million.” Additionally, CBL disclosed that, “[u]nder the terms of the proposed settlement, we will not pay any dividends to holders of our common shares payable in the third and fourth quarters of 2019.” Following this news, shares of the Company’s stock declined $0.47 per share, or nearly 25% in value, to close on March 27, 2018 at $1.44 per share.
In May 2022, the Court largely denied defendants’ proposed motion to dismiss the complaint, paving the way for litigation to proceed into the discovery phase.
In August 2022, the Court approved of a proposed settlement of the action for $17.5 million.