Around January 15, 2025, a purported shareholder, Paul Sidhu, filed a derivative lawsuit against Seritage Growth Properties in the U.S. District Court for the District of Maryland. This was followed by another derivative lawsuit filed around January 20, 2025, by James Wallen in the same court.
These derivative actions allege similar acts and omissions as the class action lawsuit filed on July 1, 2024. They assert claims of breach of fiduciary duty and other allegations against the Company’s Chief Executive Officer, Chief Financial Officer, and current and former members of the Board of Trustees, naming the Company as a nominal defendant.
The complaints seek compensatory damages, an order for corporate governance reforms, restitution from individual defendants, and an award of costs and expenses. On February 13, 2025, the parties to these derivative actions filed a stipulation and proposed order to consolidate the lawsuits and appoint lead counsel. Seritage Growth Properties intends to vigorously defend itself against these allegations.
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