According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose: (1) that Innovative Industrial Properties focus is to be a cannabis company lender rather than a real estate investment trust (REIT); (2) that the true values of Innovative Industrial Properties properties are significantly lower than Innovative Industrial Properties represents; (3) existential issues in its top customers; (4) that as a result, its top customers may not be able to continue making payments to Innovative Industrial Properties and Innovative Industrial Properties would face significant issues replacing these customers; and (5) that as a result, defendants statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
