According to the Complaint, Innovative Industrial Properties, Inc. ("IIPR" or the "Company") is an internally managed REIT purportedly focused on the acquisition, ownership, and management of specialized properties leased to state-licensed operators for their regulated medical-use cannabis facilities. This class action was filed against IIPR and four individual Defendants.

The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that: (i) IIPR was experiencing significant declines in rent and property-management fees in connection with certain customer leases; (ii) the foregoing would likely impair the Company’s ability to maintain FFO and revenue growth; (iii) accordingly, IIPR’s leasing operations were less profitable than the Company had represented to investors; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.