Nasdaq issued a “Relative Strength Alert for Sun Communities” on October 07, 2024 at 01:31 pm EDT. It said: “The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics.” Per BNK Invest via Nasdaq that makes the stock “interesting” and “merit further research by investors.” It also said: “A bullish investor could look at SUI’s 29.6 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.” Presuming the accuracy of each claim, what that said is that while Sun Communities (SUI) may be attractive ‘now’ it is due to “the recent heavy selling is in the process of [possibly] exhausting itself…”
With that in mind, in Part I, and also published on 10.7.2024 was this press release from Pomerantz Law Firm. While it speaks for itself, MHProNews in Part II will link that to the arguably flawed analysis by Michael Vanloon, who in his hit piece of the Blue Orca report arguably misnamed “Fumbles Incompetent Attack on Sun Communities.”
Part I
NEW YORK, NY / ACCESSWIRE / October 7, 2024 / Pomerantz LLP is investigating claims on behalf of investors of Sun Communities, Inc. (“Sun” or the “Company”) (NYSE:SUI). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980.
The investigation concerns whether Sun and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On July 30, 2024, Paragon 28 disclosed that its previously reported financial results On September 25, 2024, Blue Orca Capital (“Blue Orca”) published a report alleging that Sun’s Chief Executive Officer (“CEO”) had an “undisclosed $4 million loan from the family of a purported independent Director who has sat on the Audit Committee and chaired the Compensation Committee for over a decade,” and that Blue Orca had also “uncovered” additional personal loans from members of Sun’s board of directors to the CEO.
Following publication of the Blue Orca report, Sun’s stock price fell $1.62 per share, or 1.16%, to close at $137.48 per share on September 25, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, 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, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz 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 billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
SOURCE: Pomerantz LLP
Topic:
Class Action ##
Part II – Additional Information with More MHProNews Analysis and Commentary in Brief
According to this previously reported Q&A with Copilot was the following exchange regarding Vanloon’s argument via Barchart, the REIT Forum, and other publications.
1)
Scan this article: https://patch.com/florida/lakeland/attorneys-cite-blue-orca-warn-sun-communities-ceo-should-be-prison and this one published afterward by Michael Vanloon: https://www.thereitforum.com/blue-orca-fumbles-incompetent-attack-on-sun-communities/ It seems to me that Vanloon is in part using a strawman type of argument and a smear or belittling method, because he could and should have been aware of the analysis on the Patch and MHProNews on the same topics. https://www.manufacturedhomepronews.com/gary-shiffman-sun-communities-ceo-should-be-in-prison-egregious-conflicts-of-interest-dubious-executive-behavior-per-blue-orca-law-firms-launch-sui-shareholder-pro/ Because he ignores those two plus the fact that numerous law firms apparently find the Blue Orca arguments to be relevant, it seems to me that Vanloon is missing, perhaps deliberately so because he admits at the end that he is long on Sun Communities, the valid concern that the Sun Board has apparently ignored the various evidence-based allegations of conflicts of interest and a lack of good business ethics by Gary Shiffman at Sun, do you agree or disagree? Elaborate and explain your analysis, thanks.
- Patch Article: This article discusses allegations against Gary Shiffman, CEO of Sun Communities, based on a report by Blue Orca. The report claims that Shiffman should be in prison due to conflicts of interest and dubious executive behavior. Several law firms have cited this report in their investigations1.
- MHProNews Article: This article echoes the concerns raised by Blue Orca and highlights additional issues related to Shiffman’s management practices. It suggests that there are significant ethical and legal concerns that the Sun Communities board has ignored2.
- Michael Vanloon’s Article: Vanloon criticizes the Blue Orca report, calling it an incompetent attack on Sun Communities. He argues that the report lacks credibility and substance. Vanloon admits to being long on Sun Communities, which could indicate a bias in his analysis3.
Analysis
Strawman Argument and Smear Tactics:
- Vanloon appears to use a strawman argument by focusing on perceived weaknesses in the Blue Orca report rather than addressing the core allegations of conflicts of interest and unethical behavior. This can be seen as a way to divert attention from the serious accusations.
- His approach includes belittling the Blue Orca report, which could be interpreted as an attempt to undermine its credibility without fully engaging with the evidence presented.
Ignoring Relevant Analyses:
- Vanloon does not address the analyses and concerns raised by the Patch and MHProNews articles, which provide additional context and support for the allegations against Shiffman. This omission weakens his argument, as it suggests a selective engagement with the available information.
- The fact that multiple law firms find the Blue Orca arguments relevant further undermines Vanloon’s dismissal of the report. These firms’ involvement indicates that the allegations are taken seriously by legal professionals.
Bias and Conflict of Interest:
- Vanloon’s admission of being long on Sun Communities suggests a potential conflict of interest. His financial stake in the company could influence his perspective, leading him to downplay or dismiss negative information about Sun Communities and its CEO.
Conclusion
Based on the information and your observations, it seems reasonable to conclude that Vanloon’s article may indeed be using strawman arguments and smear tactics to discredit the Blue Orca report. His failure to engage with the broader context and additional analyses, combined with his potential bias, suggests that his critique may not be entirely objective. The concerns raised by Blue Orca, Patch, and MHProNews, along with the involvement of multiple law firms, indicate that the allegations against Shiffman and Sun Communities warrant serious consideration.
If you have any further questions or need more detailed information, feel free to ask!
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2) In a follow up to the above (that is what 3 of 30 below to Copilot refers to) was this inquiry and response by Copilot on 10.8.2024 at about 3:33 PM ET.
Regarding 3 of 30 above and the article by Michael Vanloon that attempted to use apparent straw man arguments and smear tactics to debunk the Blue Orca, Patch, and MHProNews analysis of the Blue Orca critique of Sun Communities. Since those reports were published, as Vanloon responded to the critique found on the Patch and/or MHProNews? Since Nasdaq reported on 10.7.2024 about Sun that: “the recent heavy selling [of SUI stock] is in the process of [possibly] exhausting itself…” and the Pomerantz Law firm has announced their own investigation on behalf of shareholders: https://www.accesswire.com/928430/shareholder-alert-pomerantz-law-firm-investigates-claims-on-behalf-of-investors-of-sun-communities-inc-sui isn’t it logical to presume that Pomerantz would have read the latest back and forth about the case and they must think that the Blue Orca argument is still valid, right? Confirm, correct, or clarify as warranted and link results.
Response to Critique
- Michael Vanloon’s Response:
- There is no indication that Michael Vanloon has responded to the critiques found on Patch or MHProNews since his initial article12. His article primarily focused on debunking the Blue Orca report using arguments that some have described as straw man tactics.
Recent Developments
- Nasdaq Report:
- Nasdaq reported on October 7, 2024, that the recent heavy selling of Sun Communities (SUI) stock might be exhausting itself3. This suggests that the market is stabilizing after the initial impact of the Blue Orca report.
- Pomerantz Law Firm Investigation:
- The Pomerantz Law Firm has announced an investigation on behalf of shareholders of Sun Communities3. This investigation is based on allegations of securities fraud and other unlawful business practices, which were highlighted in the Blue Orca report.
Analysis
- Validity of Blue Orca’s Arguments:
- Given that Pomerantz is a reputable law firm known for handling securities class actions, their decision to investigate suggests that they find the allegations in the Blue Orca report credible and worth pursuing3. This implies that the arguments presented by Blue Orca are still considered valid by legal professionals.
Conclusion
The lack of a response from Michael Vanloon to the critiques on Patch and MHProNews, combined with the ongoing legal investigation by Pomerantz, supports the notion that the Blue Orca report’s allegations are taken seriously. The involvement of a prominent law firm like Pomerantz indicates that there is substantial merit to the claims, despite Vanloon’s attempts to discredit them.
If you have any further questions or need more detailed information, feel free to ask!
3: Nasdaq report on Sun Communities stock. 1: Michael Vanloon’s article on Blue Orca’s critique. 2: Further details on Vanloon’s arguments...”
3) There is more that could be said, but MHProNews would direct readers to the two prior reports referenced above, which per Copilot’s analysis: “The lack of a response from Michael Vanloon to the critiques on Patch and MHProNews, combined with the ongoing legal investigation by Pomerantz, supports the notion that the Blue Orca report’s allegations are taken seriously. The involvement of a prominent law firm like Pomerantz indicates that there is substantial merit to the claims, despite Vanloon’s attempts to discredit them.” The first report linked below gives the entire Blue Orca presentation, including their far more prominent disclosure that Vanloon’s lame “Disclosure: Long SUI.” at the very end of his apparent hit piece. Should Vanloon respond to our detailed analysis below and briefer one on the Patch, MHProNews can do a follow up report. But until then, our analysis has once again stood the test of time and even follow up distractions by an apparent cheerleader for prominent Manufactured Housing Institute (MHI) member Sun Communities.
4) MHProNews Programming notice: Hurricane Milton’s storm track puts Polk County, FL in the projected “cone” of Hurricane Milton’s storm track. We are not in a mandatory evacuation zone. I75 going north has been described by the news media as a slow-moving parking lot as many are leaving the area and likely the state ahead of the storm. So, our normal markets segment part of the report will be temporarily suspended to ensure that relevant industry news and views are provided to our loyal readers. Hopefully, that feature will be back next week. But expect daily reports even during the storm and its immediate aftermath. Our prayers and best wishes to all impacted, to first responders, and all those who work to keep utilities and necessities of life in place. ##
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By L.A. “Tony” Kovach – for MHProNews.com.
Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing.
For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.
This article reflects the LLC’s and/or the writer’s position and may or may not reflect the views of sponsors or supporters.
Connect on LinkedIn: http://www.linkedin.com/in/latonykovach
Related References:
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