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If you purchased a significant amount of shares of Washington Prime Group Inc. (NYSE: WPG) between November 5, 2020 and March 4, 2021, and / or if you purchased any (NYSE: WPG shares prior to November 2020 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: July 23, 2021. NYSE: WPG investors should contact the Shareholders Foundation, Inc.
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
May 24, 2021 - An investor in shares of Washington Prime Group Inc. (NYSE: WPG), filed a lawsuit in the U.S. District Court for the Southern District of Ohio over alleged violations of Federal Securities Laws by Washington Prime Group Inc. in connection with certain allegedly false and misleading statements made between November 5, 2020 and March 4, 2021.
Columbus, OH based Washington Prime Group Inc. is a retail REIT and a recognized leader in the ownership, management, acquisition and development of retail properties.
Washington Prime Group Inc. reported that its annual Total Revenue declined from $661.48 million in 2019 to $524.41 million in 2020, and that its Net Income of $4.427 million in 2019 turned into a Net Loss of $219.78 million in 2020.
On February 16, 2021, Washington Prime Group Inc disclosed that its operating partnership, Washington Prime Group, L.P. ("WPG L.P."), had "elected to withhold an interest payment of $23.2 million due on February 15, 2021 with respect to WPG L.P.’s outstanding Senior Notes due 2024," and that "WPG L.P. has a 30-day grace period to make the interest payment before such non-payment constitutes an ‘event of default.’" Washington Prime Group Inc further advised that, in an event of default, certain counterparties to the senior notes "could accelerate the outstanding indebtedness due . . . making such indebtedness due and payable, which would result in a cross-default with respect to some of WPG L.P.’s or the Company’s other indebtedness."
Then, on March 4, 2021, Bloomberg reported that Washington Prime Group Inc "is preparing a potential bankruptcy filing as time runs out to avert default after it skipped an interest payment on its debt, according to people with knowledge of the plans."
Shares of Washington Prime Group Inc (NYSE: WPG) declined from $16.55 per share on January 27, 2021, to as low as $1.69 per share on March 5, 2021.
According to the complaint the plaintiff alleges on behalf of purchasers of Washington Prime Group Inc. (NYSE: WPG) common shares between November 5, 2020, and March 4, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between November 5, 2020 and March 4, 2021, the Defendants failed to disclose to investors that Washington Prime Group Inc’s financial condition was deteriorating substantially, that, as a result, there was substantial uncertainty about the Company’s ability to meet its capital structure obligations as they became due, and that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.