A securities class action has been filed against Millrose Properties, Inc. (MRP) on behalf of all persons and entities who purchased or otherwise acquired Millrose Properties securities between February 7, 2025 through October 2, 2026. This case has been filed in the USDC – SDFL.
The complaint alleges that, prior to and during the Class Period, Millrose represented to investors that it “engages, through its subsidiaries, in land purchases, horizontal development and homesite option purchase arrangements, for Lennar, certain entities with which Lennar has a business relationship or in which Lennar has an ownership interest, and potentially other homebuilders and developers.” Millrose further made clear to investors that Millrose does not “have any lease agreements” nor does it “intend to enter into any lease agreements in the foreseeable future.”
Notwithstanding these statements, prior to and during the Class Period, defendants failed to disclose that:
(i) despite representations to the contrary, Millrose’s objectives were not limited to engaging
in land purchases, horizontal development, and homesite option purchase arrangements for Lennar and potentially other homebuilders and developers;
(ii) despite representations to the contrary, Millrose would in fact enter into lease agreements and would have tenants in its properties;
(iii) Millrose would purchase $200 million worth of properties from Lennar;
(iv) Millrose would lease the properties purchased from Lennar out at a loss; and
(v) as a result of the foregoing, defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Plaintiff alleges that the truth emerged on October 2, 2025 when Hunterbrook Media issued a report revealing that, contrary to Millrose’s earlier representations, Millrose purchased $200 million worth of finished homes from Lennar, an entity that controls Millrose, with the intent of leasing those properties on the rental market. In addition to leasing properties on the rental market, contrary to its earlier representations, Hunterbrook revealed that Millrose is making a loss on those rental properties. On this news, Millrose’s share price fell by $2.10, or 8.5%, from a close of $24.61 on October 2, 2026, to a close of $22.51 on October 5, 2026.