Bronstein, Gewirtz & Grossman, LLC Files Class Action Lawsuit Against Innovative Industrial Properties, Inc.
On January 28, 2025, in the United States District Court for the Southern District of New York, Bronstein, Gewirtz & Grossman, LLC, a leading national securities litigation law firm, announced the filing of a class action lawsuit against Innovative Industrial Properties, Inc. (“IIPR” or “the Company”) (NYSE: IIPR) and certain of its officers. The lawsuit alleges that the Company and its officers violated federal securities laws.
Class Definition
The class action seeks to recover damages on behalf of all persons and entities that purchased or otherwise acquired IIPR securities during the period from February 27, 2024, to December 19, 2024 (the “Class Period”).
Allegations
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose material adverse facts about the Company’s business, operations, and financial condition. Specifically, the complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose:
- Defendants’ failure to disclose that IIPR’s growth was unsustainable due to the Company’s inability to maintain its historical growth rates;
- Defendants’ failure to disclose that IIPR was experiencing significant tenant turnover, which would negatively impact the Company’s revenue and cash flow;
- Defendants’ failure to disclose that IIPR was facing increased competition in the cannabis real estate market;
- Defendants’ failure to disclose that IIPR was experiencing operational challenges at certain properties, including delays in lease-up and tenant build-outs;
Impact on Individual Investors
If you purchased or otherwise acquired IIPR securities during the Class Period and suffered a loss, you may be eligible to recover your loss through this class action. You may also wish to consult with a securities attorney to explore your options.
Impact on the World
The filing of a class action lawsuit against Innovative Industrial Properties, Inc. is significant because it highlights the growing scrutiny being placed on companies in the cannabis industry. The lawsuit alleges that IIPR and its officers made false and/or misleading statements about the Company’s business, operations, and financial condition, which could have a negative impact on investor confidence in the industry as a whole. Additionally, the lawsuit could lead to increased regulatory scrutiny of the cannabis industry and the securities markets.
Conclusion
Bronstein, Gewirtz & Grossman, LLC’s filing of a class action lawsuit against Innovative Industrial Properties, Inc. and certain of its officers is a serious allegation that could have significant implications for the cannabis industry and investor confidence in the sector. If you purchased IIPR securities during the Class Period and suffered a loss, you may be eligible to recover your losses through this class action. It is important for investors to stay informed about the developments in this case and to consult with a securities attorney to explore their options.
The information in this communication is not legal advice. Laws and regulations relating to securities are complex and constantly changing. Investors should consult with their own legal counsel for legal advice regarding their specific situation.
Bronstein, Gewirtz & Grossman, LLC, with offices in New York, Philadelphia, and California, is a leading securities litigation law firm. Our lawyers have recovered billions of dollars for investors harmed due to securities fraud, corporate fraud, shareholder class actions, and other complex litigation in courts across the nation. Please visit our website for more information:
