Millrose Properties Stock Drops Amid Securities Litigation Over Lennar Homes

Millrose Properties shares fell $2.10, or 8.5%, between October 2 and October 5, 2026, following a report that the company had begun buying and listing finished Lennar homes for rent. This action allegedly contradicted previous filings that stated Millrose would not have tenants on its properties. A securities class action has been filed on behalf of investors who acquired Millrose securities between February 7, 2025, and October 2, 2026.

The stock decline was prompted by allegations that Millrose Properties management provided misleading information to the public and investors. The complaint further alleges that management described a rent-to-own pilot program that contradicted repeated SEC filings. A Goldman Sachs client note had previously relayed management's view that the new rental homes should earn returns comparable to or better than land banking.