An investigation for investors in NYSE:RSO shares was announced over potential securities laws violations by Resource Capital and certain of its directors and officers in connection certain financial statements.
Investors who purchased shares of Resource Capital Corp. (NYSE:RSO), have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
The investigation by a law firm focuses on whether certain statements by Resource Capital regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
On August 5, 2015, Resource Capital Corp announced a net loss of $0.24 per share during the quarter ended June 30, 2015 caused by a charge of more than $41 million stemming from the impairment of a loan made to a luxury hotel in Puerto Rico. As a result of this news, Resource Capital Corp’s stock price plunged approximately 12% from its August 4, 2015 closing price of $3.48 to close at $3.05 per share on August 5, 2015.
On September 10, 2015, a lawsuit was filed against Resource Capital Corp. over alleged securities laws violations. The plaintiff claims that the defendants issued allegedly materially false and misleading statements and/or failed to disclose material information regarding the risk of Resource Capital’s commercial loans portfolio and its processes and controls for assessing the quality of its portfolio.
On February 29, 2016, Resource Capital Corp. announced its results for the three months and year ended December 31, 2015. Resource Capital Corp. reported that its annual Total Revenue rose from $144.92 million in 2014 to $167.65 million in 2015 and that its Net Income declined from $61.0 million in 2014 to $10.55 million in 2015.
On November 14, 2016, Resource Capital Corp. revealed to investors disappointing results for the period ended September 30, 2016, including funds from operations of $12.9 million, or 42 cents per share, and a loss of $51.6 million, or $1.69 per share on revenues of $17.2 million. On a conference call with investors, Resource Capital Corp. CEO Robert Lieber attributed the Company’s poor performance in part to disconnected business lines and vowed to divest certain Company assets to improve performance.
Shares of Resource Capital Corp. (NYSE:RSO) declined on November 14, 2016 to as low as $7.57 per share.
On January 13, 2017, NYSE:RSO shares closed at $8.33 per share.
Those who purchased NYSE:RSO shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North – Suite 423
92108 San Diego