Berger & Montague, P. C. Announces Preliminary Approval of Settlement on behalf of Prime Group Realty Trust Series B 9% Cumulative Redeemable Preferred Stock

PHILADELPHIA, Feb. 27, 2015 /PRNewswire/ -- Berger & Montague, P. C. one of the Lead Counsel for a class action pending in United States District Court of Illinois announces today that subject to final approval by the Court, an $8.25 million settlement has been reached with defendants in the case, Fox v. Riverview Realty Partners, f/k/a Prime Group Realty Trust, et al.

The proposed settlement has been achieved on behalf of holders of Prime Group Realty Trust's Series B 9% Cumulative Redeemable Preferred Stock during the period October 10, 2011 through December 26, 2012.

On October 10, 2011, Prime Group Realty Trust agreed to sell voting control of the company to Five Mile by selling newly-issued common shares to Five Mile. Prior to such sale, Prime Group Realty Trust had no publicly-issued common shares and the Series B Shares were Prime Group Realty Trust's only publicly-issued shares.  On December 26, 2012, Prime Group Realty Trust and Five Mile merged, forcing a cash-out of the Series B Shareholders.

Plaintiff alleged that Prime Group Realty Trust breached their fiduciary duties by transferring control of Prime Group Realty Trust to Five Mile and forcing the holders to surrender their Series B Shares for inadequate compensation.  Plaintiff also claimed that Five Mile was unjustly enriched.

A hearing for final approval of the settlement is set for May 26, 2015. A copy of the Settlement Notice and Claim Form are available at www.primegrouprealtytrustlitigation.com and www.bergermontague.com.  

The Class, previously certified by the Court, is represented by Berger & Montague, P.C., Krislov & Associates, Ltd., and the Law Office of Gerald W. Berger.

Media Contacts for Counsel:

Robin Blumenfeld Switzenbaum
Lawrence Deutsch
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
[email protected]
[email protected]

SOURCE Berger & Montague, P.C.

Related Links

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