Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Washington Prime Group, Inc. (WPG) 1
Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Washington Prime Group, Inc. (“Washington Prime” or “WPG”) in the United States District Court for the Southern District of Ohio on behalf of those who purchased or otherwise acquired publicly traded Washington Prime securities between November 5, 2020 and March 4, 2021, inclusive (the “Class Period”).

The Complaint alleges Defendants failed to disclose to investors: (1) that WPG’s financial condition was deteriorating substantially; (2) that, as a result, there was substantial uncertainty about the Company’s ability to meet its capital structure obligations as they became due; and (3) 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.

On February 16, 2021, WPG 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.’” The Company 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.” On this news, the Company’s stock price fell $4.59, or 38%, to close at $7.49 per share on February 16, 2021, on unusually heavy volume.

Then, on March 4, 2021, Bloomberg reported that WPG “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, the Company’s stock price fell $3.77, or 60%, to close at $2.51 per share on March 4, 2021, on unusually heavy volume.

Investors who purchased or otherwise acquired shares of WPG during the Class Period should contact the Firm prior to the July 23, 2021 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston.

 

See Campaign: http://www.gme-law.com
Contact Information:
(212) 983-1300.
Thomas J. McKenna,
tjmckenna@gme-law.com.
Gregory M. Egleston,
gegleston@gme-law.com.

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