Allegations Against Sun Communities, Inc. CEO Lead to Class Action Lawsuit

Investors now doubt the integrity of Sun Communities, Inc. after a recent short-seller report made stunning allegations against the Company’s CEO.  Shocked investors have now filed a class action lawsuit against the company.

According to the lawsuit, in 2019, Sun Communities’ CEO took a $4 million mortgage from the parents of one of the company’s board members.  Under SEC rules, this was a “related-party transaction” that had to be reported, but the Company never filed that paperwork. The truth started to emerge in February when the Company announced that it had discovered major weaknesses in its internal controls and financial reporting. Investors learned the full scope of the problem in September after short-seller Blue Orca published a report detailing the mortgage transaction.  Blue Orca also discovered that the CEO had taken out other personal loans from Sun Communities board members, but none had been reported to the SEC. Shocked investors quickly sold off their shares.  Now, some of those investors are joining the lawsuit.

Join the Lawsuit.