General Growth Properties Inc (NYSE: GGP) Investor Securities Class Action Lawsuit 10/31/2008

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Company Name(s): 
General Growth Properties
Case Name: 
General Growth Properties Inc Shareholder Class Action Lawsuit 10/31/2008
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NYSE: GGP
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
10/31/2008
Class Period Begin: 
04/30/2008
Class Period End: 
10/24/2008
Court of Filing: 
U.S. District Court for the Northern District of Illinois
Deadline To File for Lead: 
12/30/2008
Date Settled: 
05/19/2010
Settlement Amount: 
$15,500,000
Deadline to Participate in Settlement: 
07/19/2010
Summary: 

May 19, 2010 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorney's fees and expenses, and dismissed the action with prejudice.

February 24, 2010 - The court preliminarily approved the settlement.

February 23, 2010 - Parties filed a stipulation of settlement.

September 17, 2009 - The court denied in part and granted in part the defendants' motion to dismiss.

May 20, 2009 - Defendants filed a motion to dismiss.

April 21, 2009 - The lead plaintiff filed an amended complaint on behalf of investors who purchased GGP common shares between April 30, 2008 and October 24, 2008. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between April 30, 2008 and October 24, 2008.

March 31, 2009 - The lead plaintiff was appointed

February 9, 2009 - All cases were consolidated.

January 26. 2009 - Another investor filed a complaint.

October 31, 2008 - An investor in shares of General Growth Properties Inc (NYSE: GGP) filed a lawsuit in the U.S. District Court for the Northern District of Illinois against General Growth Properties Inc over alleged violations of Federal Securities Laws.

According to the complaint the plaintiff charges General Growth Properties Inc and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that between April 30, 2008 and October 26, 2008 defendant issued materially false and misleading statements regarding General Growth Properties Inc's business and financial results.

Specifically, defendants represented that General Growth Properties Inc had the ability to refinance billions of dollars in debt that was coming due in the fall of 2008 and spring of 2009 on acceptable terms. In fact, General Growth Properties Inc did not have access to such financing. Further, defendants failed to disclose that the General Growth Properties Inc’s President/Chief Operating Officer and its Chief Financial Officer had received loans from the Chief Executive Officer’s family trust in violation of the General Growth Properties Inc’s own Code of Business Conduct and Ethics. Then on September 22, 2008, General Growth Properties Inc announced that it was pursuing a comprehensive evaluation of its financial and strategic alternatives. On October 3, 2008, General Growth Properties Inc suspended its dividend, and then, on October 27, 2008, General Growth Properties Inc announced it was marketing for sale its portfolio of retail properties in Las Vegas. The stockholder accuses that as a result of this news, General Growth Properties Inc’s (NYSE: GGP) stock price declined, falling from $21.42 on September 19, 2008 to less than $2.00 per share on October 27, 2008, or nearly 95% from high of $43.83 per share between April 30, 2008 and October 26, 2008.