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LOS ANGELES, May 25, 2021 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises investors that a class action lawsuit has been filed on behalf of Washington Prime Group, Inc. ("WPG" or "the Company") (NYSE: WPG) investors that acquired securities between November 5, 2020 and March 4, 2021.
WPG disclosed on February 16, 2021 that its operating partnership, Washington Prime Group, 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.”
WPG’s stock price fell $4.59, or 38%, on this news to close at $7.49 per share on February 16, 2021, on unusually heavy volume.
Then, on March 4, 2021, it was reported by Bloomberg 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.
The complaint filed in this class action alleges that throughout the Class Period, WPG made materially misleading and/or false statements, as well as failed to disclose material adverse facts about WPG’s business, operations, and prospects. Specifically, WPG 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 WPG’s ability to meet its capital structure obligations as they became due; and (3) that, as a result of the foregoing, WPG’s positive statements about the their business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
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