It is alleged in the complaint that the registration statement was materially false and misleading and failed to state: (1) that certain of Colony Credit’s assets’ credit quality had deteriorated prior to the Merger and were continuing to deteriorate at the time of the Merger; (2) that certain of the company’s loans, including four loans related to a New York hotel worth approximately $261 million, were substantially impaired, sufficient collateral to secure the loans was not available, and it was not likely that these loans would be repaid; (3) that, as a result, the valuation attributed to certain of the Colony Credit’s assets was overstated; (4) that, certain of the assets contributed as part of the Merger were of substantially lower value than reflected in the financial statements made public by the company and the registration statement; (5) that, as a result, the financial condition of the company’s, such as its book value, was materially overstated; and (6) that, as a result of the foregoing, the positive statements in the registration statement about the Colony Credit’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Colony Credit Real Estate, Inc.
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CONTACT:
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Lesley F. Portnoy, Esq.,
www.portnoylaw.com
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Los Angeles, CA 90067
info@portnoylaw.com
