NEW YORK, Dec. 13, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Eastern District of Michigan on behalf of all persons or entities who purchased or otherwise acquired Sun Communities Inc. (“SUI” or the “Company”) (: SUI) securities between February 28, 2019 and September 24, 2024, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
The Complaint alleges that the Defendants provided investors with material information concerning SUI’s accounting practices and internal control over financial reporting. The Complaint alleges that the Defendants’ statements included, among other things, confidence in SUI’s brand, calling the Company “industry leading” and repeatedly touting strong performance years. The Complaint further alleges that the Defendants consistently publicly reported financial results, outlooks, and guidance to investors, all while engaging in insider trading and concealing undisclosed loans and a $4 million mortgage. The Complaint alleges that this scheme compromised the independence of SUI’s Board, the Compensation Committee, and the Audit Committee, while calling into question the integrity of the Company’s governance, controls, and financial disclosures.
The Complaint further alleges that Defendants made materially false and misleading statements and/or concealing material adverse facts concerning where money was coming from, namely, undisclosed loans and a $4 million mortgage. The Complaint alleges that Defendants concealed key information regarding Board members’ insider trading, loans taken on behalf of SUI by CEO Shiffman, and the mortgage signed by CEO Shiffman on behalf of an entity called DH Bingham Farms LLC. The Complaint also alleges that such statements absent these material facts caused Plaintiff and other shareholders to purchase SUI’s securities at artificially inflated prices.
The Complaint further alleges that On September 24, 2024, after market close, the truth emerged when Blue Orca published a report detailing that SUI’s CEO Shiffman received an undisclosed $4 million mortgage from the family of SUI Board member Brian Hermelin. The Complaint also alleges that Blue Orca reported that Hermelin, who has been Chair of the Compensation Committee and a member of the Audit Committee since 2015, is also a stepcousin of CEO Shiffman and their families reportedly have a “close-knit bond.” The Complaint alleges that the Blue Orca report asserts that CEO Shiffman has borrowed money from Arthur Weiss, a SUI Board member and partner of a law firm that serves as SUI’s General Counsel, according to the Company’s 10-K. The Complaint alleges that in a deposition conducted on March 28, 2023, CEO Shiffman acknowledged that he and Weiss have “had a relationship over 35 years where we’ve loaned each other money.” The Complaint further alleges that Weiss paid a doctor implicated in a life insurance fraud scheme $700,000 on behalf of Shiffman. The Complaint also alleges that Blue Orca’s report called into the question the integrity of SUI’s Board and the integrity of the Company’s governance, controls, and financial disclosures.
The Complaint alleges that investors and analysts reacted immediately to SUI’s revelation. The Complaint also alleges that the price of SUI’s common stock declined dramatically, causing harm to investors.
Investors who purchased or otherwise acquired shares of SUI should contact the Firm prior to the February 10, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the firm.
