Facts

Plaintiff Brian Barry filed a class action lawsuit against defendants Colony Northstar Inc., Richard Saltzman, Darren Tangen, Neale Redington, and David Hamamoto, claiming violations of Federal Securities laws under sections 10(b), 10b-5 and 20(a) of the Securities Exchange Act of 1934.

PLAINTIFFS' CONTENTIONS: Plaintiffs contended the class members purchased or acquired publicly traded securities of Colony Northstar, a global real estate and investment management firm, from Feb.28, 2017 throughout March 2018, and defendants artificially inflated prices during the class period, which resulted in plaintiffs being damaged. Plaintiffs contended defendants knew the public statements and documents issued and distributed under the company's name were false when defendants misrepresented material facts about the financial condition and status of the company.

DEFENDANT'S CONTENTIONS: Defendants denied the contentions.

Result

The court dismissed the case with prejudice because the court concluded plaintiffs failed to adequately prove defendants allowed its stocks to trade at artificially inflated levels until it recorded an impaired goodwill in the healthcare and management structures in 2018.