Apartment Trust of America, Inc. Stockholders Re-Elect Directors Rejecting "No Vote" Campaign by Sovereign Capital Management; Wins Previously Disclosed Litigation

RICHMOND, Va., June 29, 2012 /PRNewswire/ -- Apartment Trust of America, Inc. (ATA) announced in filings with the U.S. Securities and Exchange Commission this week two significant events for company stockholders. The company's stockholders overwhelmingly rejected an effort by Sovereign Capital Management to disrupt the proxy process and election of directors, and the company won relief from any liability in a lawsuit related to a property purchase ATA did not pursue. 

In the ATA annual meeting earlier this week, more than 90 percent of the voting stockholders voted in favor of re-electing all existing directors. In a letter to stockholders, Stanley J. Olander, Jr., chief executive officer and chairman of the board of directors said, "We appreciate your support and realize that you are entrusting us to make prudent decisions for the company. We take the responsibility seriously and will continue to work in your best interest to enhance stockholder value."

Sovereign Capital Management Group had made a concerted effort over the 10 days prior to the ATA annual stockholders' meeting to disrupt the meeting. "We do not know how Sovereign Capital obtained a copy of our stockholder list," Olander said in his letter, "but we are taking steps to have it returned.  Sovereign Capital has insinuated it is a stockholder, but that does not appear to be the case." Olander also encouraged stockholders to report any unwanted communications or solicitations by Sovereign Capital to the company.

As previously announced Merrill Lynch, Pierce, Fenner & Smith Incorporated (BofA Merrill Lynch) has been retained to explore strategic alternatives for the company. Management and BofA Merrill Lynch are working closely with one another for the benefit of the stockholders.

In a separate matter, the Circuit Court in Fairfax County Virginia issued its ruling on Wednesday, June 27, in the litigation relating to a series of agreements that were entered into in 2010 by which ATA was to purchase eight apartment properties. Some investors in the statutory trusts that owned the apartments in the transaction named ATA as a defendant in this litigation that they brought principally against the trustee who had authority to act on behalf of the trusts. 

"Throughout this litigation, we knew and maintained that there was no basis for the company being a defendant," Olander said. "I am pleased that the Court ruled we committed absolutely no wrongdoing and are not liable for any of the claims asserted against us in this litigation."

Olander also said that Apartment Trust of America, Inc. intends to pursue all possible remedies in an effort to recover costs associated with this litigation.

About Apartment Trust of America, Inc.

Apartment Trust of America, Inc. is a Real Estate Investment Trust in the business of acquiring and holding a diverse portfolio of quality apartment communities with stable cash flows and growth potential in select U.S. metropolitan areas.

Contact: Gus Remppies
Phone: (804) 338-2449
Email: [email protected]

SOURCE Apartment Trust of America, Inc.