Around May 8, 2025, a third derivative lawsuit was filed against Seritage Growth Properties by purported shareholder Derrick Cheroti in the U.S. District Court for the Southern District of New York. This new lawsuit adds to the existing legal challenges faced by the company.
The Cheroti Derivative Action alleges similar acts and omissions as the previously filed class action and derivative lawsuits. It asserts claims of breach of fiduciary duty and other allegations against the Company’s Chief Executive Officer, Chief Financial Officer, and current and former members of the Board of Trustees.
Notably, the complaint in the Cheroti Derivative Action seeks an award of punitive damages, in addition to compensatory damages, corporate governance reforms, and restitution. Seritage Growth Properties has stated its intention to vigorously defend itself against these allegations.
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