Archived Investigations
Lineage, Inc. (NasdaqGS: LINE)
Lineage and certain of its executives and others are charged with failing to disclose material information in its IPO Registration Statement and Prospectus (collectively, the “Offering Documents”), violating federal securities laws.
The alleged false and misleading statements and omissions include, but are not limited to, that the lingering effects of the COVID-19 pandemic had “accelerated trends that had a marked short-term impact on cold storage demand and have the potential to be growth engines for the industry in coming years” after the IPO; however, in truth, the Company was experiencing a sustained downturn, as its customers not only destocked excessive inventory built up during the COVID-19 pandemic, but also shifted to the maintenance of leaner inventories on a go-forward basis and as more cold-storage supply came on line, with Lineage suffering particularly negative effects in terms of occupancy rates and pricing power due to its recent imposition of unsustainable price increases amongst its customer base.
The case is City of St. Clair Shores Police and Fire Retirement System v. Lineage, Inc., et al., No. 25-cv-12383.