Saxena White filed an original action against Brixmor and certain of its senior executives for securities fraud on May 31, 2016. The complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, and/or failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company and its senior executives purposefully smoothed income items for nine quarters in order to achieve consistent quarterly same property NOI growth; (2) the Company lacked adequate internal and financial controls; and (3) that, as a result of the foregoing, Defendants’ statements about Brixmor’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
On November 29, 2016, the Court issued an Order appointing Westchester Putnam Counties Heavy & Highway Laborers Local 60 Benefit Funds, Teamsters Local 456 Annuity Fund, and the City of Birmingham Retirement and Relief System (collectively, the “Institutional Investors”) as Lead Plaintiff and appointing Saxena White as Lead Counsel.
Lead Plaintiffs filed an Amended Complaint on February 16, 2017. In May 2017, the parties reached an agreement to settle the Action for a cash payment of $28 million for the benefit of the Settlement Class. After conducting confirmatory discovery, Lead Plaintiffs filed an unopposed motion to the Court for preliminary approval of the parties’ Stipulation of Settlement. On July 31, 2017, the Court granted preliminary approval of the Settlement.
The Court conducted a fairness hearing on December 6, 2017. On December 13, 2017, the Court issued its Judgment Approving Class Action Settlement and found that the Settlement was fair, adequate and reasonable.