Important Information for Investors: Innovative Industrial Properties Class Action Lawsuit
On March 12, 2025, the law firm of Robbins Geller Rudman & Dowd LLP announced that purchasers or acquirers of Innovative Industrial Properties, Inc. (IIPR) securities between February 27, 2024, and December 19, 2024, inclusive (the “Class Period”), have until Tuesday, March 18, 2025, to seek appointment as lead plaintiff in a class action lawsuit. The lawsuit, captioned Giraudon v. Innovative Industrial Properties, Inc., alleges that the Company and certain of its top executives violated the Securities Exchange Act of 1934.
Background
Innovative Industrial Properties, Inc. is a real estate investment trust (REIT) that focuses on the acquisition, ownership, and management of specialized industrial properties leased to experienced, state-licensed medical-use marijuana growers and processors for the production and sale of legal medical cannabis in the United States. The Company has elected to be taxed as a REIT for federal income tax purposes.
Allegations in the Lawsuit
The complaint alleges that during the Class Period, defendants made false and misleading statements and failed to disclose material adverse facts about the Company’s business, operations, and financial condition. Specifically, the complaint alleges that defendants failed to disclose that:
- The Company was experiencing declining demand for its properties due to increased competition and regulatory risks;
- The Company’s revenue growth was primarily driven by the acquisition of new properties rather than organic growth;
- The Company’s financial statements did not accurately reflect the true financial condition of the business;
- Defendants had insufficient disclosures regarding the Company’s relationship with certain related parties.
Impact on Individual Investors
If you purchased or acquired IIPR securities during the Class Period, you may be entitled to recover your losses. The lead plaintiff will act on behalf of all other class members in directing the litigation and deciding important issues, including whether to accept a settlement, engage in settlement negotiations, or proceed to trial. You may also choose to take no action and remain an absent class member. The class action is subject to the court’s approval.
Impact on the World
The outcome of this class action lawsuit could have significant implications for the cannabis industry as a whole. If the allegations are proven true, it could lead to increased scrutiny and regulatory action against other cannabis-related businesses. It could also impact investor confidence in the industry, potentially leading to a decrease in stock prices for cannabis companies. Conversely, if the allegations are found to be without merit, it could bolster investor confidence and lead to increased investment in the industry.
Conclusion
If you purchased or acquired Innovative Industrial Properties securities during the Class Period and believe you may have lost money as a result, you may be entitled to recover your losses. It is important to act quickly and seek the advice of a qualified securities attorney. The deadline to seek appointment as lead plaintiff is March 18, 2025. For more information, contact Robbins Geller Rudman & Dowd LLP.
The outcome of this class action lawsuit could have far-reaching implications for the cannabis industry. While the allegations, if proven true, could lead to increased regulatory scrutiny and decreased investor confidence, a favorable outcome could bolster investor confidence and lead to increased investment in the industry. Regardless of the outcome, it is important for investors to stay informed and seek the advice of a qualified securities attorney if they believe they have suffered losses.
Robbins Geller Rudman & Dowd LLP represents investors nationwide in securities litigation and other complex litigation. The firm has obtained significant recoveries for its clients and was ranked in The American Lawyer’s top 20 securities law firms in 2023.
