Investors Sue Lineage, Inc. Over Alleged IPO Misrepresentations

Law Offices of Howard G. Smith has filed a class action lawsuit on behalf of investors who purchased Lineage, Inc. common stock in its July 2024 IPO. The lawsuit alleges that the Registration Statement made false and/or misleading statements and failed to disclose material adverse facts about the Company's business, operations, and prospects. Lineage investors have until September 30, 2025, to file a lead plaintiff motion.

Investors who purchased Lineage, Inc. (NASDAQ: LINE) common stock in the company's July 2024 initial public offering (IPO) have until September 30, 2025, to file a lead plaintiff motion in a class action lawsuit. The lawsuit alleges that the Registration Statement made false and/or misleading statements and failed to disclose material adverse facts about the company's business, operations, and prospects.

The class action lawsuit, captioned City of St. Clair Shores Police and Fire Retirement System v. Lineage, Inc., No. 25-cv-12383 (E.D. Mich.), was filed by the Law Offices of Howard G. Smith. The complaint alleges that Lineage, along with certain of its top executives, directors, IPO underwriters, and IPO sponsor, violated the Securities Act of 1933.

Lineage, a Maryland REIT focused on temperature-controlled cold-storage facilities, sold over 65 million shares of Lineage common stock to investors at $78 per share, raising more than $5 billion in gross offering proceeds. The lawsuit alleges that the registration statement was false and/or misleading and/or failed to disclose that:

1. Lineage was experiencing sustained weakening in customer demand, as additional cold-storage supply had come on line, Lineage’s customers destocked a glut of excessive inventory built up during the COVID-19 pandemic, and Lineage’s customers shifted to maintaining leaner cold-storage inventories on a go-forward basis in response to changed consumer trends.
2. 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 Lineage.
3. Lineage was unable to effectively counteract the adverse trends listed above through the use of minimum storage guarantees or as a result of operational efficiencies, technological improvements, or its purported competitive advantages.
4. As a result, 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.
5. Consequently, Lineage’s financial results, business operations, and prospects were materially impaired.

Since the IPO, the price of Lineage stock has fallen to lows near $40 per share, remaining substantially below the IPO price at the time of the filing of the complaint.

Investors who wish to participate in the class action lawsuit are encouraged to contact the Law Offices of Howard G. Smith by email at [email address] or by phone at [phone number].

References:

[1] https://www.businesswire.com/news/home/20250807044977/en/Law-Offices-of-Howard-G.-Smith-Encourages-Lineage-Inc.-LINE-Investors-To-Inquire-About-Securities-Fraud-Class-Action
[2] https://www.morningstar.com/news/business-wire/20250805915071/lineage-investor-deadline-robbins-geller-rudman-dowd-llp-files-class-action-lawsuit-against-lineage-inc-and-announces-opportunity-for-investors-with-substantial-losses-to-lead-class-action-lawsuit-line
[3] https://www.marketscreener.com/news/line-breaking-news-lineage-inc-stock-significantly-declines-after-ipo-on-customer-downturn-inv-ce7c5ed8dc8dfe20