Judge Praises $9.25 Million Settlement of Parking REIT Suit
A judge in Circuit Court for Baltimore City recently granted final approval of a $9.25 million settlement of a class and derivative lawsuit benefiting stockholders of The Parking REIT. Read a copy of the order here.
Girard Sharp, together with co-counsel at Blau & Malmfeldt, Kramon & Graham, and Chimicles Schwartz Kriner & Donaldson-Smith LLP, negotiated the settlement. The case was brought by stockholders alleging injury as a result of the internalization of The Parking REIT’s Advisor—in which CEO and Defendant Michael Shustek held a considerable stake.
The settlement requires The Parking REIT to pay approximately $9.25 million and provide a tender offer to common stockholders of up to 15% of common shares outstanding (excluding those held by the Advisor and its affiliates). The settlement will also result in a needed capital infusion and new management for the company.
In granting final approval, the Honorable Lawrence P. Fletcher-Hill, who presided over the case, stated: “I’m satisfied from all that has been submitted in very careful detail . . . that the result obtained is certainly adequate, probably well more than adequate, for the claim. And that [settlement] value equating at over $9 million, about $9.25 million, is at least half and maybe a little bit more than half of what the Plaintiffs would consider as the potential maximum recovery in this case.”