A shareholder lawsuit has named Chattanooga-based shopping center company CBL & Associates Properties Inc. and company officials, claiming they failed to disclose the potential of an adverse judgment related to a class action case.
The class-action case involved CBL allegedly overcharging for electricity costs of small business retail tenants, according to the shareholder lawsuit filed in federal court in Chattanooga. After CBL settled the suit involving alleged overcharging costs in March 2019, the share price of the company’s stock dropped about 25%, the lawsuit said.
The suit said CBL, which owns Hamilton Place and Northgate malls in Chattanooga, and the officers breached their fiduciary duties by “recklessly causing the company to engage in the overcharge misconduct …”
Shareholder Pierre Kemmer brought the suit on behalf of others. Attorney Phillip Kim of The Rosen Law Firm is his attorney.