Lawsuit filed for Investors in shares of Colony Credit Real Estate, Inc. (NYSE: CLNC)

An investor, who purchased shares of Colony Credit Real Estate, Inc. (NYSE: CLNC), filed a lawsuit over alleged Securities Laws violations by Colony Credit Real Estate, Inc.

Investors who purchased or otherwise, acquired the common stock of Colony Credit Real Estate, Inc. (NYSE: CLNC) pursuant and/or traceable to the Company's Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with the combination of Colony NorthStar, Inc. ("Colony NorthStar") and NorthStar Real Estate Income Trust, Inc. ("NorthStar I") and NorthStar Real Estate Income II, Inc. ("NorthStar II") on or about February 1, 2018 (the "Merger”), have certain options and for certain investors are short and strict deadlines running. Deadline: November 9, 2020. NYSE: CLNC investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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.

The plaintiff claims that the Registration Statement was materially false and misleading and omitted to state that the credit quality of certain of the Company's assets had deteriorated prior to the Merger and were continuing to deteriorate at the time of the Merger, that certain of the Company's loans, including four loans of approximately $261 million related to a New York hotel, were substantially impaired, there was insufficient collateral to secure the loans, and it was unlikely that the loans would be repaid, that, as a result, the valuation attributed to certain of the Company's assets was overstated; (iv) that certain of the assets contributed as part of the Merger were of substantially lower value than reflected in the Company's financial statements and the Registration Statement, that, as a result, the Company's financial condition, including its book value, was materially overstated, and that, as a result of the foregoing, the positive statements in the Registration Statement about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Those who purchased shares of Colony Credit Real Estate, Inc. (NYSE: CLNC) have certain options and should contact the Shareholders Foundation.

Media Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.