NEW YORK, Oct. 19, 2026 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in Millrose Properties, Inc. (NYSE: MRP) that Chief Executive Officer Darren L. Richman and Chief Financial Officer Garrett Rosenblum face Section 20(a) control person claims in a securities class action covering purchases between February 7, 2025 and October 2, 2026. Find out if you may be eligible to recover losses. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
The complaint charges that both executives signed six SEC filings during the Class Period that described a land bank without tenants. MRP shares lost $2.10 per share, or 8.5%, by the close of the next trading day after an October 2, 2026 report detailed the alleged home purchases. The window to apply for lead plaintiff closes on December 8, 2026.
The CEO and CFO Behind the Filings
Mr. Richman has served as CEO and President, and Mr. Rosenblum as CFO and Treasurer, since February 7, 2025, the day Millrose debuted on the NYSE following its spin-off from Lennar Corporation. The pleading asserts that their positions gave them authority over the contents of the Company's SEC reports, press releases, and investor presentations. As averred, Millrose has no employees and relies on Kennedy Lewis, an outside manager selected by Lennar and co-founded by Mr. Richman.
Alleged Control Person Liability
- Both executives signed the March 31, 2025 Form 10-K, which stated Millrose did "not, and will not, have any tenants or occupants" on its portfolio properties.
- Mr. Rosenblum alone signed the May and July 2025 Form 10-Qs, which described a company that sells finished homesites back to homebuilders.
- Both signed the February 27, 2026 Form 10-K, which stated Millrose "generally" did not allow tenants on its homesite properties.
- Each allegedly received the challenged reports before or shortly after release and had the ability to block or correct them.
- Both allegedly knew adverse facts were being withheld from the public while positive representations continued.
Section 20(a) Exposure for the CEO and CFO
Section 20(a) can make individuals who control a company jointly responsible for its alleged violations of Section 10(b) and Rule 10b-5. Plaintiffs contend those alleged violations came to light when Hunterbrook Media reported that Millrose had bought finished homes from its former parent and was renting them out at an apparent loss.
"Corporate officers have a duty to ensure their companies' public statements are accurate and complete. The complaint alleges that Millrose's chief executive and chief financial officer signed filings telling investors the Company would have no tenants, yet Millrose allegedly went on to rent out homes bought from its former parent. Shareholders deserve a full examination of whether those signatures were backed by accurate disclosure." -- Joseph E. Levi, Esq.
Submit your information to learn more or call (212) 363-7500.
Levi & Korsinsky, LLP is a nationally recognized shareholder rights firm. Over the past 20 years, the firm has secured hundreds of millions of dollars for aggrieved shareholders. Ranked in ISS Top 50 for seven consecutive years.
Frequently Asked Questions About the MRP Lawsuit
Q: What court was the MRP class action filed in? A: The case was filed in the United States District Court for the Southern District of Florida, governed by the Private Securities Litigation Reform Act of 1995.
Q: Who are the defendants named in the MRP lawsuit? A: The complaint names Millrose Properties, Inc. and individual defendants including senior executives who signed SEC filings, made public statements, or certified financial disclosures under Sarbanes-Oxley.
Q: What is the MRP class action lawsuit about? A: A securities class action has been filed against Millrose Properties, Inc. (NYSE: MRP) alleging materially false and misleading statements between February 7, 2025 and October 2, 2026. Shares fell approximately 8.5% after an October 2, 2026 report disclosed that Millrose had purchased an estimated $200 million of finished Lennar homes to rent out. Investors who purchased shares during the Class Period and suffered losses may be eligible to seek compensation.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: What happens after I contact Levi & Korsinsky? A: An attorney will review your trading history at no cost and provide an initial assessment of your potential eligibility.
Q: What if I already sold my MRP shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.
Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.
Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys' fees and expenses subject to court approval.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (212) 363-7500
Fax: (212) 363-7171
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