IIPR Investor Alert: Robbins LLP is Investigating Innovative Industrial Properties, Inc. (IIPR) on Behalf of Shareholders
SAN DIEGO–(BUSINESS WIRE)–$IIPR #REIT–Shareholder rights law firm Robbins LLP is investigating Innovative Industrial Properties, Inc. (NYSE: IIPR) and its officers and directors to determine whether they breached their fiduciary duties and violated securities laws in connection with the Company’s underwriting policies. Innovative Industrial Properties purports to be an internally-managed real estate investment trust (“REIT”) focused on the acquisition, ownership, and management of specialized industrial properties leased to experienced, state-licensed operators of their regulated state-licensed cannabis facilities. If you would like more information about our investigation of Innovative Industrial Properties, Inc.’s misconduct, click here. What is this Case About: According to a complaint filed against Innovative Industrial Properties, during the class period, defendants touted its rigorous underwriting standards and extensive experience in the cannabis industry. They also stated that the Company’s organization and operations qualify it to be taxed as a REIT for U.S federal income tax purposes. Notwithstanding, defendants failed to disclose that the value of the Company’s properties are significantly lower than represented and that the Company’s focus is to be a cannabis company lender rather than a REIT. Further, Innovative Industrial Properties’ top customers may not be able to continue making payments and the Company would face significant issues replacing those customers. On April 14, 2022, market researcher Blue Orca Capital released a report describing the Company as “a marijuana bank masquerading as a REIT. IIPR’s model is to conduct sale-leaseback transactions with cannabis producers who are otherwise prohibited from borrowing money because of federal regulations.” The report further noted that “[u]nlike with other REITs, IIPR cannot expect to recover the lost income from defaulting tenants because it appears that the actual value of its properties are substantially below their carrying value on the IIPR’s balance sheet.” On this news, the Company’s share price fell $13.76 per share,…
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Source : IIPR Investor Alert: Robbins LLP is Investigating Innovative Industrial Properties, Inc. (IIPR) on Behalf of Shareholders
reposted by Cannabis News World
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