Shares of Wheeler Real Estate Investment Trust, Inc. (WHLR) are skyrocketing on Friday, up over 122%, following a favorable court ruling. The company announced that the United States Court of Appeals for the Fourth Circuit affirmed a 2023 order dismissing a class action complaint filed against both Wheeler and its affiliate, Cedar Realty Trust. This lawsuit, filed by purported holders of Cedar’s preferred stock, challenged the actions of Cedar, Wheeler, and Cedar’s former board of directors.
The dismissal of this case, titled Kim, et al., v. Cedar Realty Trust, Inc., et al., on September 4, 2024, is a significant victory for both Wheeler and Cedar. M. Andrew Franklin, CEO of both companies, expressed his satisfaction with the outcome, stating that it allows both companies to “remain well-positioned to execute on their strategic plans.”
The news of this legal victory has sparked significant interest in WHLR stock, leading to heavy trading activity. Trading volume has already surpassed 20 million shares in Friday’s session, despite the company’s float being less than 1 million shares. This surge in trading activity indicates strong investor confidence in the company’s future prospects.
For those interested in investing in Wheeler Real Estate, purchasing shares can typically be done through a brokerage account. Many platforms offer fractional shares, allowing investors to own portions of stock without having to buy an entire share. This option is particularly useful for stocks with high share prices, such as Berkshire Hathaway, where owning even a single share can be expensive.
However, if you’re looking to bet against the company, the process is more complex. This typically involves options trading or short selling, which requires access to a specialized platform and a broker who allows short selling. It’s important to note that shorting a stock carries inherent risks and should only be undertaken by experienced investors who understand the associated complexities.
The recent court victory and the subsequent surge in WHLR share price are likely to attract further attention from investors. The positive developments suggest that Wheeler Real Estate is well-positioned to capitalize on future opportunities, making it an intriguing prospect for those looking to invest in the real estate sector.
