Investors Alert: Pomerantz Law Firm Investigates Necessity Retail REIT, Inc. Claims

Investor Alert: Pomerantz Law Firm's Investigation of Necessity Retail REIT, Inc.

Pomerantz LLP, a prominent law firm recognized for its focus on corporate and securities litigation, has launched a detailed investigation into claims concerning investors of Necessity Retail REIT, Inc. (NASDAQ: RTL). The exploration arises from the recent merger between Necessity Retail and Global Net Lease, Inc., which took place on September 12, 2023. This investigation aims to ascertain whether key officials at Necessity Retail and their directors have partaken in any unlawful activities or securities fraud affecting their investors.

Following the merger, several shareholders of Necessity Retail received shares in Global Net Lease. However, since the acquisition was finalized, Global Net Lease has seen a significant decline in its share price—over 33%. This decline has raised red flags among investors, prompting Pomerantz to investigate potential misrepresentation of the financial health and future projections of the merged companies.

The merger’s offering materials provided optimistic projections for the combined company's Adjusted Funds From Operations (AFFO) over several years. According to these projections, the anticipated AFFO would reach approximately $399.8 million in 2024 and about $409.0 million in 2025. AFFO is a key metric used by Real Estate Investment Trusts (REITs) to gauge their capacity to generate the requisite cash for sustaining shareholder distributions. Nevertheless, these projections and their credibility now sit under a cloud of skepticism given the recent performance of Global Net Lease’s stock.

Investors who believe they may have been misled regarding the merger's benefits or the financial stability of Necessity Retail are encouraged to reach out to the Pomerantz team for guidance. Danielle Peyton, reachable at __email__ or by phone at 646-581-9980, can provide further details regarding potential involvement in the investigation or any class action lawsuit that may arise in the future. Pomerantz has a long-standing reputation for advocating for victims of securities fraud and other corporate misdeeds, possessing over 85 years of experience in the legal field.

This investigation is a critical reminder of the importance of transparency and accountability in corporate mergers, particularly in real estate sectors where investor trust is paramount. The fallout from this merger highlights the potential risks involved in high-value acquisitions, especially when investor information and future earnings are not conveyed with complete honesty.

Concerns about corporate governance and the fiduciary duties of executives involved in such significant transactions can lead to broader implications not just for the companies, but also for the investment community as a whole. Stakeholders are advised to stay vigilant and informed about the companies they invest in, ensuring awareness of their governance practices and financial health.

As the investigation progresses, updates from Pomerantz LLP will likely shed more light on the situation, assisting investors in making informed decisions regarding their holdings in both Necessity Retail and Global Net Lease. For those impacted, this is a pivotal moment to voice concerns and potentially recover losses incurred as a result of alleged corporate misconduct.

About Pomerantz LLP
Pomerantz LLP has established itself as one of the leading firms in corporate law and securities litigation. The firm, founded by Abraham L. Pomerantz, emphasized the need for corporate accountability and has been engaged in numerous high-profile class action lawsuits over the decades. With offices spanning across major cities such as New York, Chicago, and Los Angeles, Pomerantz continues to represent individuals and institutional investors in litigation concerning securities fraud and violations of fiduciary duty.

Investors impacted by this situation should stay informed and proactive in seeking legal advice, as the outcomes of such investigations can often set significant precedents in corporate governance and investor rights.