Washington Prime Group, Inc.
On March 4, 2021, Bloomberg reported the impending bankruptcy of Washington Prime Group after they failed “to avert default.” This came after a February 16, 2021 announcement that the Company would be withholding an interest payment on senior notes that could lead to default and an acceleration of debt.
On this news, the Company’s stock price fell $3.77, or 60%, to close at $2.51 per share on March 4, 2021.
The complaint alleges that throughout the Class Period, Defendants failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, 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.
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