On October 23, 2013, Girard Gibbs and co-counsel filed a class action lawsuit on behalf of investors in Strategic Realty Trust, Inc. (“the Company”) for breaches of fiduciary duties owed to the Company’s common shareholders. Prior to August 23, 2013, the Company was known as TNP Strategic Retail Trust, Inc.
The complaint alleges that the Company, its former affiliates Thompson National Properties, LLC, TNP Strategic Retail Advisor, LLC and TNP Securities, LLC, and certain of the Company’s current or former officers and directors violated Sections 11, 12(a)(2) and/or 15 of the Securities Act of 1933. Among other things, the complaint alleges that the offering materials provided to investors during the IPO contained material misrepresentations and omissions about the financial health of the Company and its affiliates and about the performance of earlier real estate programs sponsored by the Company’s affiliates.
On January 16, 2013, the Company revealed that it had defaulted on a $29 million loan that its CEO and Chairman had personally and unconditionally guaranteed and on its $45 million revolving credit facility. Then, on August 28, 2013, the Company issued a press release disclosing that a board-level “Special Committee” had been formed a year earlier “for the protection of shareholders” after one of the Company’s affiliates was found to be paying fees to itself that had not been earned; and that its affiliates had defaulted on certain corporate debt obligations and had sustained significant corporate losses. In the wake of this disclosure, the Company replaced its CEO and Chairman and severed its relationship with its affiliates.
If you are a member of this class, you can view a copy of the filed complaint or join this class action. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Strategic Realty Trust, Inc. investors who wish to learn more about the lawsuit can contact Girard Gibbs’ securities fraud lawyers toll free at (866) 981-4800.