The Law Offices of Vincent Wong announce that a class action lawsuit has been commenced in the United States District Court for the Central District of California on behalf of investors who purchased or otherwise acquired Colony Credit Real Estate, Inc. (NYSE: CLNC) common stock pursuant and/or traceable to the Company’s false and/or misleading Registration Statement and Prospectus issued in connection with the combination of Colony NorthStar, Inc. and NorthStar Real Estate Income Trust, Inc. and NorthStar Real Estate Income II, Inc. on or about February 1, 2018 (the "Merger").
According to the Colony Credit lawsuit, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (i) 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; (ii) 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; (iii) 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; (v) as a result, the Company’s financial condition, including its book value, was materially overstated; and (vi) as a result of the foregoing, the positive statements in the Registration Statement about the Company’s business, operations, and prospect were materially misleading and/or lacked a reasonable basis.
If you suffered a loss in Colony Credit you have until November 9, 2020 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
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