Shares of temperature-controlled logistics real estate investment trust Lineage have experienced a dramatic collapse in value, accompanied by a significant class-action lawsuit filed by investors. The legal action centers on allegations that the company made misleading statements in its initial public offering documentation.
Investor Allegations and Legal Challenge
The class-action complaint alleges that Lineage’s IPO prospectus contained materially false and misleading information. Investors claim the company failed to disclose a sustained weakening in customer demand for refrigerated storage services ahead of its public market debut.
According to the legal filing, Lineage presented its strong pre-IPO performance—potentially boosted by pandemic-related demand—as evidence of long-term resilience. The lawsuit contends the company did not adequately account for post-pandemic normalization trends or customers’ moves toward leaner inventory management practices in the cold storage sector.
Post-IPO Performance and Financial Results
Lineage commenced trading on the Nasdaq in July 2024 with an offering price of $78 per share, raising approximately $4.44 billion in its public market debut. Since then, the stock has faced substantial downward pressure.
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Following the release of quarterly earnings, shares declined to $48.23 by April 30, 2025, representing a drop of $8.26 per share or 14.62%. The stock subsequently reached new lows around $40 per share, marking an approximate 50% decline from its initial offering price. As of September 2, 2025, shares traded at approximately $40.96.
The company’s financial performance has shown mixed results:
* Q1 2025 Revenue: Decreased 2.7% to $1.29 billion
* Q2 2025 Revenue: Increased 0.9% to $1.35 billion (reported August 6), with a GAAP net loss of $7 million
* 2025 Outlook: Reduced guidance for both adjusted EBITDA and AFFO per share
Sector Implications and Market Impact
The legal proceedings against Lineage highlight potential vulnerabilities within the broader cold storage REIT sector. The lawsuit raises broader questions about market oversupply, macroeconomic pressures, and investor skepticism regarding IPO disclosure practices.
These financial results and ongoing litigation are expected to influence investor sentiment toward both Lineage and the temperature-controlled logistics real estate market overall. The current market valuation clearly reflects the substantial challenges confronting the company as it navigates post-IPO market realities.
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