SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Colony Credit Real Estate, Inc. of

SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on
their Investment in Colony Credit Real Estate, Inc. of Class Action Lawsuit
and Upcoming Deadline – CLNC

NEW YORK, Sept. 27,  2020 (GLOBE NEWSWIRE) --  Pomerantz LLP announces that  a
class action lawsuit has  been filed against Colony  Credit Real Estate,  Inc.
 (“Colony  Credit”  or  the  “Company”)  (NYSE:  CLNC)  and  certain  of   its
officers.   The class action,  filed in United States  District Court for  the
Central District of California, and  docketed under 20-cv-08305, is on  behalf
of a class consisting  of all persons other  than Defendants who purchased  or
otherwise,  acquired  the  common  stock  of  Colony  Credit  pursuant  and/or
traceable to the Company’s false and/or misleading Registration Statement  and
Prospectus (collectively, the “Registration  Statement”) issued in  connection
with the  combination  of  Colony NorthStar,  Inc.  (“Colony  NorthStar”)  and
NorthStar Real Estate Income  Trust, Inc. (“NorthStar  I”) and NorthStar  Real
Estate Income II,  Inc. (“NorthStar  II”) on or  about February  1, 2018  (the
“Merger”), seeking  to  pursue  remedies  under Sections  11  and  15  of  the
Securities Act of 1933 (the “Securities Act”).

If you are  a shareholder who  purchased Colony Credit  securities during  the
class period, you have until November 9, 2020, to ask the Court to appoint you
as Lead Plaintiff for the class.  A  copy of the Complaint can be obtained  at
www.pomerantzlaw.com.   To discuss this  action, contact Robert S.  Willoughby
at [email protected]  or 888.476.6529  (or 888.4-POMLAW),  toll-free,  Ext.
7980. Those who  inquire by  e-mail are  encouraged to  include their  mailing
address, telephone number, and the number of shares purchased. 

         [Click here for information about joining the class action]

Colony  Credit  is  a  commercial  real  estate  (“CRE”)  credit  real  estate
investment trust (“REIT”) that purports  to manage a diversified portfolio  of
CRE senior mortgage loans, mezzanine loans, preferred equity, debt securities,
and net leased properties predominantly in the U.S.

The Company’s common stock was registered with the SEC in connection with  the
Merger.  Following the Merger, Colony Credit’s common stock was listed on  the
New  York  Stock  Exchange  (“NYSE”)  without  an  initial  public   offering:
stockholders of NorthStar I  received 0.3532 shares of  the Company’s Class  A
common stock  for each  share of  NorthStar  I common  stock they  owned;  and
stockholders of NorthStar II received 0.3511  shares of the Company’s Class  A
common stock for each share of NorthStar II common stock they owned.

The Registration Statement was materially false and misleading and omitted  to
state: (i) that  the credit  quality of certain  of the  Company’s assets  had
deteriorated prior to  the Merger and  were continuing to  deteriorate at  the
time of the Merger; (ii) that  certain of the Company’s loans, including  four
loans of  approximately  $261  million  related to  a  New  York  hotel,  were
substantially impaired, there was insufficient collateral to secure the loans,
and it was unlikely that the loans  would be repaid; (iii) that, as a  result,
the valuation attributed to  certain of the  Company’s assets was  overstated;
(iv) that certain  of the assets  contributed as  part of the  Merger were  of
substantially lower value than reflected in the Company’s financial statements
and the Registration Statement; (v) that, as a result, the Company’s financial
condition, including its book value, was materially overstated; and (vi) that,
as a result  of the  foregoing, the  positive statements  in the  Registration
Statement  about  the  Company’s  business,  operations,  and  prospects  were
materially misleading and/or lacked a reasonable basis.

On August  8,  2019,  Colony Credit  issued  a  press release  to  report  its
second-quarter 2019 financial  results, in  which it reported  a $119  million
provision for loan losses.

On this news, the  Company’s share price  fell $2.00 per  share, or more  than
12%, over two  consecutive trading sessions  to close at  $14.05 per share  on
August 12, 2019.

On November 8, 2019, the Company announced a portfolio bifurcation of  certain
assets and disclosed a $127 million provision for loan losses.

On this news, the Company’s share price  fell $2.50 per share, or nearly  18%,
to close at $11.75 per share on November 8, 2019.

As of the date of  the filing of this  complaint, Colony Credit’s shares  last
closed at $5.40 per share, representing a  more than 78% decline from the  $25
book value per share valued at the time of the Merger.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and  Paris
is acknowledged  as  one of  the  premier firms  in  the areas  of  corporate,
securities, and antitrust  class litigation.  Founded by the  late Abraham  L.
Pomerantz, known  as the  dean of  the class  action bar,  the Pomerantz  Firm
pioneered the field  of securities class  actions. Today, more  than 80  years
later, the Pomerantz Firm continues in the tradition he established,  fighting
for the rights of the victims of securities fraud, breaches of fiduciary duty,
and corporate misconduct. The Firm has recovered numerous  multimillion-dollar
damages awards on behalf of class members. See www.pomerantzlaw.com.

CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980

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