Investors of Washington Prime Group, Inc. (NYSE: WPG) aren’t very happy with the recent updates of this company. The share price of WPG was $ 4.74 yesterday. While Pomerantz Law Firm is investigating claims for this company on behalf of investors, the company’s financial statement hasn’t painted a rosy picture. Last month, the company had reported its Q1-2021 financial results while also slipping the skepticism of continuing operations. The news did not go well with the WPG investors.
WPG Revenue drops by $20.7 million
The company has reported $55.4 million of net loss in the first quarter, compared with a net income of $3.4 million in Q1-2020. Revenue has dropped by $20.7 million on account of the COVID-19 impact, causing a YoY revenue dip. The company also announced incurring $12.1 million of non-cash charge, while the professional and legal expenses came in at $14.5 million in Q1-2021.
WPG under investigation claims for securities fraud
But what alarmed the investors is the company statement where it shows “substantial doubt” regarding the company continuing its operations. Even as there has been discussion about restructuring WPG’s debt beyond the realms of bankruptcy, the investors haven’t been convinced, leading to investigating claims. The ongoing investigation is ascertaining whether WPG and the top brass there engaged in unlawful business practices or securities fraud of any kind.
WPG missing interest payment
Meanwhile, previously the company had missed its $23.2 million interest payment. After this, it had received forbearance agreement extensions for continuing discussions with its stakeholders. The last extension out of the three expired on May 12. This isn’t a very healthy scenario for investors. The deadline for filing a class action lawsuit against WPG is July 23, 2021.
Washington Prime Group, L.P. owns, develops, and manages WPG Inc.’s real estate properties through its affiliates. The company also owns other assets. The properties include Royal Eagle Plaza, Markland Plaza, Lindale Mall, and Irving Mall.