LOS ANGELES–(BUSINESS WIRE)–The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors who purchased Lineage, Inc. (“Lineage” or the “Company”) (NASDAQ: LINE) common stock pursuant and/or traceable to the registration statement used in connection with the Company’s July 2024 initial public offering (the “IPO”). Lineage investors have until September 30, 2025 to file a lead plaintiff motion.
IF YOU SUFFERED A LOSS ON YOUR LINEAGE, INC. (LINE) INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.
You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at [email protected], by telephone at (310) 914-5007, or visit our website at www.frankcruzlaw.com.
What Happened?
In July 2024, Lineage conducted its IPO, selling over 65 million shares of common stock at $78 per share.
On November 6, 2024, Lineage released its third quarter 2024 financial results, revealing that it had suffered a $543 million net loss during the quarter. On this news, Lineage’s stock price fell $5.22, or 7.4%, to close at $65.79 per share on November 6, 2024, thereby injuring investors.
Then, on January 14, 2025, The Wall Street Journal reported that Lineage was laying off employees due to reduced customer demand only six months after its IPO.
Then, on April 7, 2025, Lineage announced the dismissal of its auditor, KPMG LLP. On this news, Lineage’s stock price fell $5.29, or 9.9%, over two consecutive trading days, to close at $48.41 per share on April 8, 2025.
Then, on April 30, 2025, Lineage reported first quarter 2025 financial results, including that “[t]otal revenue decreased (2.7)%” to $1.29 billion for the quarter. The Company stated it “experienced more normal seasonal trends in the first quarter after multiple years of elevated inventory levels.” On this news, Lineage’s stock price fell $8.16, or 14.62%, to close at $47.65 per share on April 30, 2025, thereby injuring investors further.
On June 3, 2025, the Company stated at an Investor Conference that there has been “pretty much flat demand” for Lineage’s products and services and that the Company was operating in a “flattish environment” in terms of demand.
The price of Lineage stock has remained substantially below the IPO price at the time of this complaint’s filing.
What Is The Lawsuit About?
The complaint filed in this class action alleges that the Registration Statement made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Lineage was then experiencing sustained weakening in customer demand, as additional cold-storage supply had come on line, the Company’s customers destocked a glut of excessive inventory built up during the COVID-19 pandemic, and the Company’s customers shifted to maintaining leaner cold-storage inventories on a go-forward basis in response to changed consumer trends; (2) that Lineage had implemented price increases in the lead-up to the IPO that could not be sustained in light of the weakening demand environment facing the Company; (3) that Lineage was unable to effectively counteract the adverse trends listed in the foregoing through the use of minimum storage guarantees or as a result of operational efficiencies, technological improvements, or its purported competitive advantages; (4) that, as a result of the foregoing, rather than enjoying stable revenue growth, high occupancy rates, and steady rent escalation as represented in the Registration Statement, Lineage was in fact suffering from stagnant or falling revenue, occupancy rates, and rent prices; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you purchased Lineage common stock, wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at:
Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: 310-914-5007
Email: [email protected]
Visit our website at: www.frankcruzlaw.com
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Contacts
Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: 310-914-5007
Email: [email protected]
Visit our website at: www.frankcruzlaw.com
