Investigation Overview
An investigation on behalf of investors of Colony Credit Real Estate, Inc. (NYSE: CLNC) shares over potential securities laws violations by Colony Credit Real Estate, Inc. and certain of its directors and officers in connection with certain financial statements was announced.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Colony Credit Real Estate, Inc. (NYSE: CLNC) concerning whether a series of statements by Colony Credit Real Estate, Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
Los Angeles, CA based Colony Credit Real Estate, Inc. operates as a commercial real estate (CRE) credit real estate investment trust in the United States.
On or about February 1, 2018, Colony Credit Real Estate, Inc issued a Registration Statement and Prospectus in connection with the combination of Colony NorthStar, Inc., NorthStar Real Estate Income Trust, Inc., and NorthStar Real Estate Income II, Inc. (the 'Merger').
Then, on August 8, 2019, Colony Credit Real Estate, Inc issued a press release to report its second-quarter 2019 financial results, in which it reported a $119 million provision for loan losses.
Additionally, on November 8, 2019, Colony Credit Real Estate, Inc announced a portfolio bifurcation of certain assets and disclosed a $127 million provision for loan losses.
Shares of Colony Credit Real Estate, Inc. (NYSE: CLNC) declined from $23.23 per share in September 2018 to as low as $2.46 per share on March 23, 2020.