Resource Capital Corp (NYSE: RSO) Investor Securities Class Action Lawsuit 09/09/2015

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Company Name(s): 
Resource Capital
Case Name: 
Resource Capital Shareholder Class Action Lawsuit 09/09/2015
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NYSE: RSO
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
09/09/2015
Class Period Begin: 
10/31/2012
Class Period End: 
08/05/2015
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
11/09/2015
Date Settled: 
04/03/2018
Settlement Amount: 
$9,500,000
Deadline to Participate in Settlement: 
07/23/2018
Summary: 

April 3, 2018 - The court preliminarily approved the settlement.

February 5, 2018 - Parties filed a stipulation of settlement.

June 1, 2017 - The lead plaintiff filed a second amended complaint.

October 5, 2016 - The court denied defendants' motion to dismiss.

April 12, 2016 - Defendants filed a motion to dismiss.

February 12, 2016 - The lead plaintiff filed an amended complaint on behalf of investors who purchased Resource Capital Corp (NYSE: RSO) common shares between October 31, 2012 and August 5, 2015. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between October 31, 2012 and August 5, 2015.

November 24, 2015 - Lead plaintiff and lead counsel were appointed.

September 9, 2015 - An investor in shares of Resource Capital Corp (NYSE: RSO) filed a lawsuit in the U.S. over alleged violations of Federal Securities Laws by Resource Capital Corp in connection with certain allegedly false and misleading statements made between March 2, 2015 and August 4, 2015.

According to the complaint the plaintiff alleges on behalf of purchasers of Resource Capital Corp (NYSE: RSO) common shares between March 2, 2015 and August 4, 2015, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between March 2, 2015 and August 4, 2015 issued allegedly materially false and misleading statements and/or failed to disclose material information regarding the risk of Resource Capital Corp’s commercial loans portfolio and its processes and controls for assessing the quality of its portfolio.

On August 5, 2015, Resource Capital Corp announced a net loss of $0.24 per share during the quarter ended June 30, 2015 caused by a charge of more than $41 million stemming from the impairment of a loan made to a luxury hotel in Puerto Rico. As a result of this news, Resource Capital Corp’s stock price plunged approximately 12% from its August 4, 2015 closing price of $3.48 to close at $3.05 per share on August 5, 2015.

Resource Capital Corp reported that its annual Total Revenue rose from $144.25 million in 2013 to $144.92 million in 2014 and that its Net Income increased from $46.45 million in 2013 to $61.20 million in 2014.

On September 11, 2015, Shares of Resource Capital Corp (NYSE: RSO) closed at $13.06 per share.