Girard Sharp LLP and Blau & Malmfeldt Announce Proposed Settlement of Class and Derivative Action in The Parking REIT, Inc. Securities Litigation
SAN FRANCISCO, May 26, 2021 /PRNewswire/ -- The following statement is being issued by Girard Sharp LLP and Blau & Malmfeldt regarding The Parking REIT Securities Litigation:
ARTHUR MAGOWSKI, as custodian
THE PARKING REIT, INC., et al.,
Case No. 24-C-19-003125
SUMMARY NOTICE OF PROPOSED SETTLEMENT OF CLASS AND DERIVATIVE ACTION
TO: ALL COMMON STOCKHOLDERS OF THE PARKING REIT, INC. (“TPR” OR “COMPANY”) WHO HAVE HELD CLASS SHARES AT ANY TIME SINCE MARCH 29, 2019 (THE “SETTLEMENT CLASS”).
YOU ARE HEREBY NOTIFIED that the Parties to the above-captioned consolidated action (“Action”) have reached a Settlement, and that the Court has preliminarily approved the Settlement and conditionally certified a settlement class comprised of TPR stockholders holding TPR common shares that were issued and outstanding as of March 29, 2019 (“Class Shares”) at any time from and including March 29, 2019 until and including the date of Final Court Approval of the Settlement (“Settlement Class”). The Settlement, the complete terms and conditions of which are set forth in the Stipulation and Agreement of Compromise, Settlement and Release (“Stipulation”), fully and completely releases the claims of the Settlement Class and the derivative claims on behalf of TPR asserted in the Action. The Settlement also encompasses the claims asserted in a related action pending in the United States District Court for the District of Nevada and captioned SIPDA Revocable Trust, by Trenton J. Warner, Director, on behalf of itself and all others similarly situated v. The Parking REIT, Inc., et al., Case No. 2:19-cv-00428.
The Settlement provides for a cash payment of $2,500,000 or, if after payment of all covered amounts and reserving for projected covered amounts, including attorneys’ fees, expenses and costs, the remaining amount of coverage under certain TPR Insurance Policies as of the Payment Date, whichever amount is greater, to a trust account (“Settlement Trust Account”), and contribution of 175,000 shares of TPR common stock to the Settlement Trust Account which shares shall be purchased by a third-party investor (“Bombe Affiliate CU”) for a total purchase amount of $2,056,250.00 which shall become part of the settlement funds (“Settlement Funds”). The Settlement Funds shall be reduced by costs, fees, and expenses for administration of the Settlement, the cost of providing notice to Settlement Class Members, any award of attorneys’ fees and expenses to Plaintiffs’ Counsel, and contribution awards to Plaintiffs (“Net Settlement Funds”). In addition, the Settlement provides for cancellation of 400,000 shares of TPR common stock scheduled to be issued to TPR’s former Advisor and contemplates a tender offer by Bombe Affiliate CU for the purchase of up to 900,506 shares, approximately 15% of TPR common shares outstanding after the consummation of certain transactions involving TPR and Bombe Affiliate CU, the consummation of which is a condition precedent for implementation of the Settlement.
YOU ARE HEREBY FURTHER NOTIFIED THAT a hearing will be held on July 16, 2021 at 2:00 p.m. Eastern Time before the Circuit Court for Baltimore City, Maryland to consider whether the Settlement Class should be finally certified, and whether the Settlement and Plaintiffs’ application for attorneys’ fees, expense reimbursement, and contribution awards should be finally approved as fair, reasonable, and adequate and in the best interests of the Settlement Class and of TPR with regard to the derivative claims asserted on its behalf. The hearing will be conducted by remote electronic means using Zoom; there will be no in-person hearing in the courthouse. The details and link for joining this hearing by Zoom will be posted two weeks before the hearing date of July 16, 2021 on the Settlement Administrator’s website ( www.theparkingreitsettlement.com ) and on the corporate website of TPR under the Investor Relations section ( www.theparkingreit.com/investor-relations/ ).
IF YOU ARE A MEMBER OF THE SETTLEMENT CLASS, YOUR RIGHTS WILL BE AFFECTED. If the Settlement becomes Final, members of the Settlement Class (“Settlement Class Members”) will have released claims as against the Defendants; Settlement Class Members do not have the right to opt out or exclude themselves from the Settlement. Any objections to the proposed Settlement and/or Plaintiffs’ application for attorneys’ fees, reimbursement of expenses and contribution awards MUST be filed with the Court no later than July 2, 2021 in accordance with the instructions provided in the Long-Form Notice.
IF YOU ARE A MEMBER OF THE SETTLEMENT CLASS, YOU MAY BE ENTITLED TO SHARE IN THE NET SETTLEMENT FUNDS.
The plan of allocation provides for prorated, per share distributions of the Net Settlement Funds to Settlement Class Members holding TPR common shares as of the Effective Date of the Settlement. No distribution will be made unless and until the Settlement is approved by the Court and becomes Final. There is no claims process in connection with the Settlement. Eligible Settlement Class Members need not take any action in order to receive distributions pursuant to the plan of allocation.
THIS NOTICE IS ONLY A SUMMARY. IT DOES NOT DESCRIBE ALL THE DETAILS OF THE STIPULATION AND THE PROPOSED SETTLEMENT. The Long-Form Notice and the Stipulation are available on the Settlement Administrator’s website ( www.theparkingreitsettlement.com ), the Investor Relations section of the Company’s website ( www.theparkingreit.com/investor-relatons/ ), the Securities and Exchange Commission’s website through the EDGAR database where TPR filed a Form 8-K on April 26, 2021 attaching the Long-Form Notice as an exhibit, or by contacting Interim Settlement Class Counsel: Paul D. Malmfeldt, Blau & Malmfeldt, 566 West Adams Street, Suite 600, Chicago, IL 60661, Phone: (312) 443-1600, Email: firstname.lastname@example.org; or Adam Polk, Girard Sharp LLP, 601 California Street, Suite 1400, San Francisco, CA 94108, Phone: (415) 981-4800, Email: email@example.com.
PLEASE DO NOT CALL THE COURT OR COURT CLERK FOR INFORMATION.
Form and substance approved by Court Order dated April 20, 2021.
View original content: http://www.prnewswire.com/news-releases/girard-sharp-llp-and-blau--malmfeldt-announce-proposed-settlement-of-class-and-derivative-action-in-the-parking-reit-inc-securities-litigation-301281994.html
SOURCE Girard Sharp LLP