SAN FRANCISCO, April 22, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, reminds Brixmore Property Group Inc. (NYSE:BRX) investors of the May 31, 2016 lead plaintiff deadline in the securities class action lawsuit related to the Defendant's violations of generally accepted accounting principles and, in turn the securities laws, by improperly smoothing income to achieve the appearance of consistent quarterly growth.
If you suffered significant losses because of your purchases of Brixmore securities between October 27, 2014 and February 5, 2016, or have information that will help our continuing investigation contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation by calling 510-725-3000, emailing BRX@hbsslaw.com or visiting https://www.hbsslaw.com/cases/BRX. The lawsuit was filed in the U.S. District Court for the Southern District of New York and investors have until May 31, 2016 to move the court to participate as a lead plaintiff.
On February 8, 2016, Brixmore revealed its income was smoothed, in violation of generally accepted accounting principles. More specifically, the Company stated that an internal review “led the Board to conclude that specific Company accounting and financial reporting personnel, in certain instances, were smoothing income items, both up and down, between reporting periods in an effort to achieve consistent quarterly same property net operating income…growth, an industry non-GAAP financial measure.” The Company also announced the immediately effective resignations of its CEO Michael Carroll, President and CFO Michael Pappagallo, and Chief Accounting Officer Steven Splain. On this news, Brixmor’s stock price dropped $5.32 per share to close at $21.10 or over 20% lower than its previous close on Friday, February 5, 2016.
The complaint alleges that throughout the class period defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company intentionally misrepresented its financial results by manipulating income items for nine quarters; and (2) Brixmore lacked adequate internal and financial controls.
“Financial transparency for public companies is critical to investors,” said Hagens Berman partner Reed Kathrein. “Income smoothing in violation of GAAP does one thing – it obfuscates the truth about a company’s finances.”
Whistleblowers: Persons with non-public information regarding Brixmor should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email BRX@hbsslaw.com.
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Contact:
Reed Kathrein, 510-725-3000
