Sun Communities, Inc. is facing multiple securities fraud investigations and a class-action lawsuit following a report published by Blue Orca Capital on September 25, 2024. The report alleged that Sun Communities' CEO received an undisclosed $4 million loan from the family of a purportedly independent Director, who also chaired the Compensation Committee and sat on the Audit Committee.
Further allegations in the report included other undisclosed personal loans from a SUI Board member to the CEO. These claims have prompted law offices to announce investigations into potential violations of federal securities laws on behalf of investors.
The class action lawsuit specifically alleges that the company failed to disclose material adverse facts, including Board members' insider trading, loans taken on behalf of SUI by CEO Shiffman, and a mortgage signed by CEO Shiffman for an entity named DH Bingham Farms LLC. These undisclosed dealings are central to the legal actions initiated against the company.
The lawsuit claims that these omissions caused shareholders to purchase SUI's securities at artificially inflated prices. Investors who acquired Sun Communities securities between February 28, 2019, and September 24, 2024, are being encouraged to participate in the ongoing legal proceedings.
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