Fox v. Riverview Realty Partners, f/k/a Prime Group Realty Trust, et al.
Patricia Fox (“Plaintiff”) brought this lawsuit on behalf of all holders of Prime Group Realty Trust’s (“PGRT”) Series B Cumulative Redeemable Preferred Stock (“Series B Shares”) during the period October 10, 2011 through December 26, 2012 (the “Class Period”), inclusive (the “Class”), against PGRT’s officers, certain members of its Board of Trustees, and Fiee Capital Partners, LLC (“Five Mile”), and certain of its affiliates (“Defendants”).
The Court has approved a settlement of $8.25 million. U.S. District Judge Matthew F. Kennelly also awarded the plaintiffs $2.75 million for attorneys’ fees, reimbursed class counsel $393,320 for expenses, and approved a $10,000 service award for lead plaintiff and former Prime Group Realty Trust shareholder Patricia Fox for her efforts on behalf of the class.
Plaintiff claims that Defendants breached their fiduciary duties to Plaintiff and the Class by transferring control of PGRT to Five Mile and forcing Plaintiff and the Class to surrender their Series B Shares for inadequate compensation. Plaintiff also claims that Five Mile was unjustly enriched by Defendants’ misconduct.
On October 10, 2011, PGRT agreed to sell voting control of the company to Five Mile by selling newly-issued common shares to Five Mile. Prior to such sale, PGRT had no publicly-issued common shares and the Series B Shares were PGRT’s only publicly-issued shares. On December 26, 2012, PGRT and Five Mile merged, forcing a cash-out of the Series B Shareholders.
A more complete description of Plaintiff’s claims is set forth in her Amended Complaint and the Court’s Order issued on May 10, 2013, which granted in part and denied in part Defendants’ motion to dismiss Plaintiff’s Amended Complaint. Both documents are available in the “Related Links” section of this page.
Following the Court’s ruling on Defendants’ motions to dismiss, the Court, by an Order issued on April 22, 2014, granted Plaintiff’s motion to certify the Class and appointed Plaintiff as Class representative and Plaintiff’s counsel Berger & Montague, P.C., Krislov & Associates, Ltd., and the Law Office of Gerald W. Berger as counsel for the Class. The Court’s Order is available in the “Related Links” section of this page.