Robbins LLP reminds investors of class action lawsuit against Washington Prime Group, Inc. (WPG) after shares drop 60%

San Diego, California and Columbus, Ohio – (Newsfile Corp. – July 9, 2021) – Shareholder rights law firm Robbins LLP reminds investors that a class action lawsuit has been filed against the Company and certain of its officers on behalf of all buyers of Washington Prime Group, Inc. (NYSE: WPG) between November 5, 2020 and March 4, 2021, for remedies under the Securities Exchange Act of 1934. WPG is an investment trust Self-Directed and Self-Administered Real Estate (“REIT”) which owns properties and operates through Washington Prime Group, LP (“WPG, LP”). WPG is the sole general partner and owns approximately 84.7% of the partnership interests of WPG LP

If you have suffered a loss as a result of the misconduct of Washington Prime Group, Inc., click here.

Washington Prime Group, Inc. (WPG) misrepresented its financial situation

According to the complaint, during the class action period, WPG did not disclose material adverse facts regarding the business, operations and prospects of the Company. Specifically, the defendants failed to disclose to investors that: (1) WPG’s financial condition was deteriorating significantly; (2) there was substantial uncertainty as to the Company’s ability to meet its capital structure obligations as they became due; and (3) as a result, position statements regarding the business, operations and prospects of the Company were misleading and / or lacked reasonable basis.

On February 16, 2021, WPG disclosed that its operating partnership, WPG LP, had “elected to withhold an interest payment of $ 23.2 million due on February 15, 2021 in respect of the senior notes in circulation of WPG LP due 2024 ”, and that“ WPG LP has a grace period of 30 days to make payment of interest before such non-payment constitutes an “event of default”. The Company further indicated that in the event of default, certain counterparties to the Senior Notes “could accelerate the outstanding debt due … making this debt due and payable, which would result in a cross default at the with respect to certain of the indebtedness of WPG LP or other indebtedness of the Company. Following this news, the company’s stock price fell $ 4.59, or 38%, to close at $ 7.49 per share on February 16, 2021.

Then, on March 4, 2021, Bloomberg reported that WPG “is preparing a potential bankruptcy filing as time is running out to avoid default after ignoring an interest payment on its debt, according to people with knowledge of the plans.” Following this news, the company’s stock price fell $ 3.77, or 60%, to close at $ 2.51 per share on March 4, 2021.

On March 16, 2021, after market close, WPG announced that it had entered into a forbearance agreement for senior bonds due 2024 and stated that there was substantial doubt as to the Company’s ability. to continue to operate. The Company has confirmed that it has entered into discussions with a view to financial restructuring.

If you bought shares of Washington Prime Group, Inc. (WPG) between November 5, 2020 and March 4, 2021, you have until July 23, 2021 to ask the court to designate you as the principal plaintiff of the class.

All representation is based on contingency fees. Shareholders pay no fees or expenses.

Robbins LLP is a nationally recognized leader in shareholder law. To be notified if a class action lawsuit against Washington Prime Group, Inc. is settled or to receive free alerts about companies involved in wrongdoing, sign up for Stock Watch today.

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Contact:
Lauren Levi
Robbins LLP
5040 Shoreham Place
San Diego, California 92122
[email protected]
(800) 350-6003
www.robbinsllp.com