Innovative Industrial Properties, Inc. (“IIPR” as listed on the NYSE) is a real estate investment trust (“REIT”) focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated state-licensed cannabis facilities. Commenced on April 25, 2022, the IIPR class action lawsuit – captioned Mallozzi v. Innovative Industrial Properties, Inc., No. 22-cv-02359 (D.N.J.) – charges IIPR and certain top executive officers with violations of the Securities Exchange Act of 1934. The Complaint filed against IIPR alleges that defendants made false and/or misleading statements and/or failed to disclose: (1) that IIPR’s focus is to be a cannabis company lender rather than a REIT; (2) that the true values of IIPR’s properties are significantly lower than the Company represented; (3) existential issues plagued its top customers; (4) that, as a result, IIPR’s top customers may not be able to continue making payments to IIPR and IIPR would face significant issues replacing these customers; and (5) that consequently, defendants’ statements about IIPR’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Author S, Cannabis Law Report, 06/01/2022 01:13:00