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Published February 5, 2025
Investors’ hopes went up in smoke after Innovative Industrial Properties revealed one of its major tenants defaulted on its leases. The news caused the Company’s stock price to tumble twenty-two percent overnight, prompting some investors to take legal action.
Innovative Industrial Properties leases real estate to government-licensed cannabis companies. Throughout 2024, Innovative boasted it was going to see a lot of “green” from new leases, especially from its top client PharmaCann. For three consecutive quarters, the Company's executives boasted about the Company's strong earnings and in particular stated it saw "strong value" in PharmaCann after penning four new leases with the company.
But, the lawsuit alleges Innovative's executives knew that things were ready to go up in smoke.
Investors were stunned in December 2024 when Innovative revealed PharmaCann defaulted on all eleven of its leases, costing Innovative millions of dollars.
Shocked investors quickly sold their shares, plummeting Innovative’s stock price.
Now, some of those investors signing up for the lawsuit.