Seritage Growth Properties, Inc. (SRG) Shareholder Investigation

Shamis & Gentile, P.A. is investigating potential shareholder claims on behalf of Seritage Growth Properties ("Seritage Growth Properties" or the "Company") (SRG) against certain of its directors and officers for alleged breaches of fiduciary duties and other violations of law. Concerned shareholders are advised to contact the firm now.

On August 14, 2023, Seritage Growth Properties disclosed a “material weakness” in its internal control over financial reporting. The Company attributed this weakness to a deficiency in the design of controls over the identification of impairment indicators for investments in real estate and insufficient documentation of evidence of review. The deficiency was further tied to the failure to identify potential indicators of impairment related to development projects in a timely manner. Following this disclosure, Seritage Growth Properties' stock price declined $0.86, or 9.67%, to close at $8.03 per share on Aug. 15, 2023, on unusually heavy trading volume.

Subsequently, on May 10, 2024, Seritage Growth Properties released its first quarter 2024 financial results, revealing that it was “adjusting [its] pricing projections for some of [its] assets.” As a result, the gross value of the Company’s portfolio of assets was reduced by at least $325 million. On this news, the Company’s stock price fell $2.54, or 27.3%, to close at $6.78 per share on May 13, 2024.

The investigation focuses on allegations that throughout the relevant period, certain directors and officers may have failed to implement and monitor effective internal controls regarding the identification and review of impairment indicators for real estate investments. It is alleged that, as a result, the Company may have overstated the value and projected gross proceeds of certain real estate assets, and that positive statements about the Company’s business, operations, and prospects may have been materially misleading or lacked a reasonable basis.

A shareholder derivative action seeks to recover damages on behalf of the Company and may result in corporate governance reforms designed to prevent similar misconduct in the future.

If you held Seritage Growth Properties (NYSE: SRG) since at least May 10, 2024, you can seek corporate reforms, the return of funds back to the Company, and a court approved incentive award for you, all at absolutely no cost to you.

Shamis & Gentile, P.A. stands out as an advocate for shareholders seeking corporate accountability and governance reforms. The firm is committed to pursuing derivative actions that benefit companies and their shareholders by recovering damages and implementing meaningful corporate governance improvements. Shamis & Gentile has recovered over $1 billion for consumers nationwide. Its extensive experience, expertise, and resources enable the firm to resolve disputes in a wide range of matters, including derivative actions, class actions and complex commercial litigation.

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