Investors React to Class Action Lawsuit Filed Against Lineage Inc. Amid Rising Concerns

Class Action Lawsuit Against Lineage, Inc.

San Diego, September 12, 2025 – In an alarming development for investors, Robbins Geller Rudman & Dowd LLP has announced a class action lawsuit against Lineage, Inc., a Maryland-based real estate investment trust (REIT) specializing in temperature-controlled cold-storage facilities. The lawsuit alleges serious discrepancies surrounding the company’s initial public offering (IPO) that took place in July 2024.

Background

The case is officially titled City of St. Clair Shores Police and Fire Retirement System v. Lineage, Inc., and it claims that the company, along with several of its high-ranking executives and IPO underwriters, has committed violations of the Securities Act of 1933. Investors who acquired Lineage stock that can be traced back to the IPO registration statement have until September 30, 2025, to step forward as potential lead plaintiffs in this suit.

Allegations and Concerns

According to the allegations, the IPO raised over $5 billion by selling more than 65 million shares at a price of $78 each. However, the class action points out that the registration statement was misleading and omitted critical information:
1. Weakened Customer Demand: A significant decline in customer demand was experienced as competing cold-storage providers began to saturate the market. The lawsuit indicates that Lineage’s customers began to destock cumulative inventory that had piled up during the COVID-19 pandemic.
2. Unsustainable Price Increases: Lineage allegedly implemented price hikes leading up to the IPO that it could not maintain due to this diminishing demand.
3. Operational Ineffectiveness: The company struggled to overcome these adverse trends through asserted operational efficiencies or technological advancements and faced stagnant or declining revenue and occupancy rates instead of the promised growth.
4. Impact on Financial Results: Lineage’s financial health has been significantly impaired, contradicting the optimistic portrayal in its IPO registration.

Since reaching IPO heights, Lineage’s stock price has plummeted, dipping to approximately $40 per share, which is considerably lower than its initial offering price.

Lead Plaintiff Appointment Process

The Private Securities Litigation Reform Act of 1995 allows any affected investor the opportunity to seek the role of lead plaintiff, ideally someone with the most substantial financial interest in the case. The lead plaintiff acts on behalf of all class members and has some leverage in selecting their legal representation.

Robbins Geller, a highly regarded law firm known for its track record in securities fraud cases, will represent the plaintiffs. The firm has achieved major recoveries in past class action lawsuits and encourages affected investors to take action promptly.

If you are an investor impacted by your investment in Lineage stock and wish to learn how you can become involved in this class action lawsuit, visit Robbins Geller's information page for more details on the claim process.

In summary, the implications of this lawsuit could have long-standing effects on Lineage, its investors, and the broader market interested in REITs and cold-storage operations as consumer patterns evolve. For investors, this might be a critical opportunity to seek redress amid growing concerns of inadequate disclosure during the IPO.

Stay tuned for updates as this case develops, shedding light on the accountability of the companies and executives involved in potentially manipulating investor perceptions for profit.