In a significant development for investors, the U.S. District Court for the District of Maryland has appointed Scott + Scott Attorneys at Law LLP as lead counsel in a proposed class action lawsuit concerning securities claims against Innovative Industrial Properties Inc. (IIPR), a real estate investment trust (REIT) focused on the medical cannabis industry.
This high-profile Medical Cannabis REIT Securities Lawsuit arises from allegations that IIPR misled shareholders regarding declining rents, reduced property management fees, and the overall status of its leasing operations.
The Honorable Judge George L. Russell III selected the City of Birmingham Retirement and Relief System as lead plaintiff, citing its substantial losses and alignment with the interests of the proposed class. The Birmingham pension system, represented by Scott + Scott and local counsel Abato Rubenstein & Abato PA, reportedly incurred losses totaling $257,792 and invested approximately $672,257 in IIPR securities during the relevant class period.
In appointing Scott + Scott, Judge Russell affirmed the firm’s qualifications and experience handling complex securities litigation, rejecting competing bids from other movants including Yolanda Castaneda, Richard A. Blocker, Kelly R. Johnson, and the Utility Board Retirement System of the City of Key West.
“We are honored by the Court’s decision and are committed to seeking justice for the investors harmed by IIPR’s alleged misconduct,” said Thomas L. Laughlin IV, partner at Scott + Scott. “Our client, the City of Birmingham Retirement and Relief System, is a well-resourced and experienced institutional investor, and we look forward to vigorously pursuing this case on their behalf.”
Judge Russell dismissed concerns over Birmingham’s involvement in other class actions, noting the institutional plaintiff’s capacity to manage multiple suits and its history of effective participation. Arguments from other movants regarding preferred stock ownership and comparative losses were deemed speculative and unpersuasive.
The case, titled Giraudon v. Innovative Industrial Properties Inc. et al., is being closely watched in the legal and investment communities due to its potential implications for the medical cannabis REIT sector.
