Investors in a property trust can’t proceed with allegations that the group misrepresented its due diligence on a cannabis facility tenant, the Third Circuit said Wednesday in affirming the suit’s dismissal.
The investors failed to show that most of the real estate investment trust’s challenged statements were misleading, Judge Tamika R. Montgomery-Reeves said for the US Court of Appeals for the Third Circuit.
Their allegations also don’t create an inference of fraudulent intent by Innovative Industrial Properties Inc. or its principals, she said.
The court joined other circuits that have accepted “willful ignorance” about an underlying issue as a basis ...