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SUI.US
id: 1426
Sun Communities (SUI) Insider Loans and Governance Misrepresentation Case
E.D. Michigan
Court2:24-cv-13314
Case number02/28/2019
Class period Start09/24/2024
Class period End02/10/2025
Lead Plaintiff motion deadline- $SUI investors filed a lawsuit against Sun Communities for misleading them about governance practices, insider loans, and accuracy in financial reporting.
- On September 24, 2024, Blue Orca Capital reported undisclosed insider loans, including a $4 million mortgage to the CEO from a board member's family member. Following this news, $SUI dropped 1.16%.
Case Details:
Between February 28, 2019, and September 24, 2024, Sun Communities presented itself as an industry leader with strong governance, focusing on growth and delivering shareholder returns.
However, according to the Blue Orca report, in February 2019, CEO Gary A. Shiffman received a $3.95 million mortgage from a trust associated with board member Brian Hermelin's family.
This transaction, characterized as a potential conflict of interest, was reportedly not disclosed in SEC filings.
Moreover, Blue Orca Capital revealed this and other undisclosed insider loans, including financial ties between Shiffman and another board member, Arthur Weiss, who had provided personal loans to Shiffman over several decades.
The report also raised concerns about the integrity of Sun Communities’ governance, internal controls, and financial reporting.
Following the revelations, $SUI dropped by 1.16%.
Based on these events, $SUI investors filed a lawsuit against Sun Communities, accusing the company of the following:
- It misled investors about its governance practices and the independence of its board.
- It failed to disclose insider loans and conflicts of interest that impacted its leadership.
Investors believe Sun Communities misrepresented its governance practices and concealed insider financial dealings.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
09/25/2024
Filing date
12/12/2024
Lead Plaintiff Deadline
02/10/2025