WHLR Stock Rallies Over 300% After Court Upholds Dismissal of Class Action Lawsuit

WHLR Stock– Wheeler Real Estate Investment Trust, Inc. (WHLR) has seen a significant surge in its stock price, trading higher on Friday following a crucial legal development. The United States Court of Appeals for the Fourth Circuit recently upheld a 2023 order that dismissed a putative class action lawsuit filed against Wheeler and Cedar Realty Trust, Inc. by alleged holders of Cedar’s preferred stock.

Key Details of the Legal Ruling

The case, known as Kim, et al., v. Cedar Realty Trust, Inc., et al., involved claims from individuals purporting to hold Cedar’s preferred stock. On September 4, 2024, the Fourth Circuit confirmed the District Court’s decision to dismiss the lawsuit. This ruling is seen as a major victory for both Wheeler and Cedar, allowing them to focus on their strategic objectives without the cloud of litigation hanging over them.

M. Andrew Franklin, CEO of both Cedar and Wheeler, expressed satisfaction with the court’s decision, stating, We are pleased that the Fourth Circuit upheld the District Court’s decision, which represents a very positive outcome for both Wheeler and Cedar. With this matter behind us, both companies remain well-positioned to execute on their strategic plans.

Stock Price Surge and Trading Volume

Following the favorable legal ruling, WHLR shares experienced a dramatic increase, gaining more than 300% on Thursday alone. As of Friday, the stock is up 122%, trading at $9.19 according to Benzinga Pro. This significant uptick in share price has generated substantial trading activity, with over 20 million shares changing hands during Friday’s session. Notably, WHLR’s stock float is under 1 million shares, contributing to the increased volatility and trading volume.

How to Buy WHLR Stock: A Guide for Investors

If you’re interested in investing in WHLR or participating in the current market activity, here’s a guide on how to proceed:

1. Buying WHLR Shares: To purchase WHLR shares, you’ll need a brokerage account. Most brokerages offer platforms where you can buy full or fractional shares. Fractional shares allow you to invest a portion of a share’s value, which is useful for high-priced stocks. For instance, while some stocks like Berkshire Hathaway may be prohibitively expensive for a single share, fractional shares make it more accessible.
2. Trading Platforms: Look for brokerage firms that support fractional shares and provide easy access to stock trading. Many online platforms offer tools and resources for both novice and experienced investors.
3. Shorting WHLR Stock: If you’re considering betting against WHLR, you’ll need an options trading platform or a broker that allows short selling. Shorting a stock involves borrowing shares to sell with the intention of buying them back at a lower price. This strategy can be complex and may require a thorough understanding of the risks involved.
4. Options Trading: Another method to profit from a potential decline in WHLR’s stock price is through options trading. You can buy put options or sell call options at a strike price above the current trading level. This approach allows you to benefit from a decrease in the stock price.

Market Impact and Future Outlook

The recent legal victory and subsequent stock price surge highlight the market’s positive reaction to the resolution of the legal dispute. With the court case behind them, both Wheeler and Cedar are positioned to move forward with their business strategies, which could further impact WHLR’s stock performance.

For investors, it’s essential to stay informed about market developments and understand the implications of major legal and financial events. As WHLR continues to navigate its strategic plans, keeping an eye on trading volumes and stock price movements will be crucial for making informed investment decisions.