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Washington Prime Group Files for Chapter 11 Bankruptcy

Washington Prime Group (NYSE:WPG) Files for Chapter 11 Bankruptcy Protection, featured by top securities fraud attorneys, The White Law Group

Washington Prime Group  – Securities Investigation

According to reports this week, Washington Prime Group (NYSE:WPG) has filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the Southern District of Texas.

The company’s Q1 2020 rental income reportedly fell $20M from the same quarter last year, and cash flows from operations dropped to $3.3M from $10M a year earlier.

Last year, the company temporarily closed some of its 100 shopping centers across the US due to the Covid-19 global pandemic. Many tenants failed to pay rent and some were forced to close permanently. According to reports, Washington Prime  was in talks for  approximately $100M in debtor-in-possession financing to aid operations during bankruptcy.

After negotiations with creditors, the company reportedly skipped a $23M bond interest payment in February, but creditors extended a forbearance agreement several times during talks. 

WPG’s share price is reportedly down -62.44% YTD, according to Market Watch.

Potential Lawsuits to Recover Financial Losses

The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended Washington Prime Group to investors.

REITs often pay a high dividend but certain advisors may have unsuitably recommended Washington Prime Group in an effort to “chase yield.”

Broker-dealers have a legal obligation to act in the best interest of their clients and have to demonstrate adequate due diligence on an investment before recommending the investment to a client. Furthermore, recommendations should be consistent with an individual’s age, risk tolerance, financial objectives, and investment knowledge.

Broker-dealers that have not done their fiduciary duty or adequately disclose the risks when selling investments may be held liable for damages lost through FINRA arbitration claims.

If you are concerned about your investment in Washington Prime Group or another mall REIT, The White Law Group may be able to help you. For a free consultation with a securities attorney, please call 888-637-5510.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois.

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, please visit https://www.whitesecuritieslaw.com.





Tags: , , , , , , Last modified: December 7, 2022