Insider Selling/Undisclosed Related Party Transactions
Lead Plaintiff Not Chosen
Product or Service
This is a securities fraud class action lawsuit against General Growth Properties alleging that General Growth made false and misleading statements about General Growth's access to financing.
Specifically, General Growth represented that it had the ability to refinance billions of dollars in debt that was coming due in the fall of 2008 and spring of 2009 on acceptable terms.
In fact, General Growth did not have access to such financing. Further, General Growth failed to disclose that General Growth's President/Chief Operating Officer and its Chief Financial Officer had received loans from the Chief Executive Officer's family trust in violation of General Growth's own Code of Business Conduct and Ethics.
On September 22, 2008, General Growth announced that it was pursuing a comprehensive evaluation of its financial and strategic alternatives. On October 3, 2008, General Growth suspended its dividend and then, on October 27, 2008, announced it was marketing for sale its portfolio of retail properties in Las Vegas. On this series of disclosures, General Growth's stock price collapsed, falling from $21.42 on September 19, 2008 to less than $2.00 per share on October 27, 2008, or nearly 95% from its Class Period high of $43.83 per share.
Name (Stock Symbol)
General Growth Properties, Inc. (GGP)
General Growth Properties, Inc. is a self-administered and self-managed real estate investment trust
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