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Washington Prime Group, Inc. Class Action Lawsuit

Company Name
Washington Prime Group, Inc.
Stock Symbol
WPG
Class Period
November 5, 2020 to March 4, 2021
Motion Deadline
July 23, 2021
Court
Southern District of Ohio
35 days left to seek lead plaintiff status

Case Summary

The Washington Prime Group, Inc. class action lawsuit charges Washington Prime and certain of its top executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Washington Prime securities between November 5, 2020 and March 4, 2021, inclusive (the “Class Period”).  The Washington Prime class action lawsuit was commenced on May 24, 2021 in the Southern District of Ohio and is captioned Slipher v. Washington Prime Group, Inc., No. 21-cv-02757.

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Washington Prime securities during the Class Period to seek appointment as lead plaintiff in the Washington Prime class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Washington Prime class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Washington Prime class action lawsuit.  An investor’s ability to share in any potential future recovery of the Washington Prime action lawsuit is not dependent upon serving as lead plaintiff.  If you wish to serve as lead plaintiff of the Washington Prime class action lawsuit or have questions concerning your rights regarding the Washington Prime class action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at malbert@rgrdlaw.com.  Lead plaintiff motions for the Washington Prime class action lawsuit must be filed with the court no later than July 23, 2021.

Washington Prime is a self-managed and self-administered real estate investment trust (“REIT”) that owns properties and conducts operations through Washington Prime Group, L.P. (“Washington Prime L.P.”).  Washington Prime is the sole general partner and holds approximately 84.7% of the partnership interests of Washington Prime L.P.

The Washington Prime class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Washington Prime’s financial condition was deteriorating substantially; (ii) consequently, there was substantial uncertainty about Washington Prime’s ability to meet its capital structure obligations as they became due; and (iii) as a result, defendants’ positive statements about Washington Prime’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On February 16, 2021, Washington Prime disclosed that Washington Prime L.P. had “elected to withhold an interest payment of $23.2 million due on February 15, 2021 with respect to [Washington Prime] L.P.’s outstanding Senior Notes due 2024,” and that “[Washington Prime] L.P. has a 30-day grace period to make the interest payment before such non-payment constitutes an ‘event of default.’”  Washington Prime 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 [Washington Prime] L.P.’s or the Company’s other indebtedness.”  On this news, Washington Prime’s stock price fell 38%.

Then, on March 4, 2021, Bloomberg reported that Washington Prime “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.”  On this news, Washington Prime’s stock price fell an additional 60%.

Finally, on March 16, 2021, Washington Prime disclosed that it had entered into a forbearance agreement with respect to the Senior Notes due in 2024 and stated there was substantial doubt as to Washington Prime’s ability to continue as a going concern.  Washington Prime confirmed that it had engaged in discussions for a financial restructuring.

With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.

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