On or around 08/16/2019 (Other)
Filing Date: April 16, 2019
According to the Complaint, Whitestone REIT owns and operates 57 commercial properties totaling 4.8 million square feet of gross leasable area in Texas, Arizona and Illinois. As of December 31, 2018, its property portfolio had a gross book value of $1.1 billion. Whitestone has elected to be taxed as a REIT under the Internal Revenue Code of 1986. Additionally, through an investment in Pillarstone Capital REIT Operating Partnership LP, Whitestone owns a majority interest in 11 properties containing approximately 1.3 million square feet of gross leasable area. Upon information and belief, the Company owns 81.4% of the total outstanding units of Pillarstone.
The Complaint alleges that throughout the Class Period, Whitestone made materially false and/or misleading statements and/or failed to disclose: (1) the Company lacked effective internal control over financial reporting; (2) Whitestone was incorrectly recognizing assets and liabilities associated with its contribution to Pillarstone Capital REIT Operating Partnership LP; (3) the Company’s financial statements for the fiscal year 2018 were overstating revenues; (4) the Company’s financial statements for the fiscal year 2018 could no longer be relied upon; and (5) as a result of the foregoing, the Company’s financial statements were materially false and misleading at all relevant times.
On May 30, 2019, the Court issued an Order consolidating cases under Docket 19-CV-01379. On August 14, this case was voluntarily dismissed.
Company & Securities Information
Defendant: Whitestone REIT
Industry: Real Estate Operations
Headquarters: United States
Ticker Symbol: WSR
Company Market: New York SE
Market Status: Public (Listed)
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