Foley & Lardner LLP secured dismissal of a putative federal securities class action against leading real estate investment trust Innovative Industrial Properties, Inc. (NYSE: IIPR) and several of its executives.
The case, pending in the U.S. District Court for the District of Maryland, alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 arising from the company’s public statements concerning tenant oversight, due diligence, and investments in certain cannabis operators. Plaintiffs sought to represent investors who purchased IIPR securities during a more than one-year proposed class period.
The Foley team obtained a complete dismissal of the action at the pleading stage. In a detailed opinion dated May 27, 2026, the court concluded that plaintiffs failed to adequately plead actionable misrepresentations or omissions and failed to allege facts giving rise to a strong inference of scienter as required by the Private Securities Litigation Reform Act. The court also dismissed the related control-person claims asserted against the individual defendants.
The ruling represents a significant victory for IIPR and its management team and highlights Foley’s experience defending public companies, directors, and officers in complex securities litigation and shareholder disputes.
Foley’s litigation team included partners Todd Murray and Andrew Howell along with senior counsel Jarren Ginsburg.