LAWSUITS NEWS & LEGAL INFORMATION
$55M Settlement Reached in Empire State Realty Trust Securities Class Action Lawsuit
This is a settlement for the Securities/Stock Fraud lawsuit.
New York, NY: Plaintiffs in the securities class action regarding the proposed consolidation of several real estate entities, including the entities that own and operate the Empire State Building, into a publicly traded real estate investment trust to be known as Empire State Realty Trust, Inc., announce that the settlement of the class action has been granted preliminary court approval.
The case, In re Empire State Realty Trust, Inc. Investor Litigation, New York Supreme Court No. 650607/2012, was brought against the transaction's chief proponents, members of the Malkin family, certain affiliated companies, and the Estate of Leona Helmsley. The Court has scheduled a final approval hearing for May 2, 2013.
The settlement will benefit investors in the entities subject to the consolidation in several ways. A settlement fund of $55 million will be established to pay monetary recoveries in accordance with a court-approved plan of allocation. In addition, the litigation was a material factor in a redesign of the transaction to permit investors to defer taxation. The lengthy process of discovery and negotiation also resulted in extensive supplemental information being disclosed to investors about the transaction, as well as a series of investor protections in connection with the REIT's anticipated initial public offering.
Pursuant to the court's order of preliminary approval, notice of the settlement will be mailed to investors in each of the subject entities in the near future.
Published on Feb-22-13
The case, In re Empire State Realty Trust, Inc. Investor Litigation, New York Supreme Court No. 650607/2012, was brought against the transaction's chief proponents, members of the Malkin family, certain affiliated companies, and the Estate of Leona Helmsley. The Court has scheduled a final approval hearing for May 2, 2013.
The settlement will benefit investors in the entities subject to the consolidation in several ways. A settlement fund of $55 million will be established to pay monetary recoveries in accordance with a court-approved plan of allocation. In addition, the litigation was a material factor in a redesign of the transaction to permit investors to defer taxation. The lengthy process of discovery and negotiation also resulted in extensive supplemental information being disclosed to investors about the transaction, as well as a series of investor protections in connection with the REIT's anticipated initial public offering.
Pursuant to the court's order of preliminary approval, notice of the settlement will be mailed to investors in each of the subject entities in the near future.
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