NEW YORK, June 9, 2016 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of New York REIT, Inc. ("NYRT" or the "Company") in connection with the Company's plan of merger with The JBG Companies (the "JBG Cos.") announced on May 25, 2016. Under the terms of the agreement, NYRT will acquire all of the properties and management businesses of the JBG Cos. in exchange for 34.8% of the newly combined JBG Realty Trust.
WeissLaw is investigating whether NYRT's Board acted to maximize shareholder value prior to entering into the agreement. Notably, on May 26, 2016, the day after the announcement, NYRT shares traded for a 52-week low of $8.79. Prior to the announcement, on May 2, 2016, NYRT shares traded for $11.07 or $2.28 above the offer price. Further, in a press release dated June 6, 2016, shareholders Michael L. Ashner and Steven Witkoff voiced serious concerns over the transaction, describing it as "one of the worst strategic transactions proposed to stockholders by a REIT board in recent memory, and will be extremely detrimental to NYRT stockholders' interests." Finally, upon completion of the transaction, the JBG Cos. will own 65.2% of the newly created company, as compared to the 34.8% remaining for NYRT and its shareholders.