Vestin Prevails In San Diego Class Action Lawsuit
Vestin Mortgage, Inc., the manager of Vestin Realty Mortgage I, Inc. (Nasdaq: VRTA) and Vestin Realty Mortgage II, Inc. (Nasdaq: VRTB) (collectively “Vestin”) announced today that the California Superior Court ruled in favor of Vestin in its San Diego class action lawsuit. The lawsuit alleged that Vestin had engaged in a “roll up” when the companies merged the two funds into real estate investment trusts (REITs) in 2006.
The lawsuit claimed that the dissenters, those who voted against the mergers that created VRTA and VRTB, were entitled to roll-up rights.
Michael V. Shustek, Chairman, Chief Executive Officer and President of both REITs, said “We are obviously very pleased with the court’s decision. When we began the merger process, Vestin engaged experienced and respected legal and accounting firms and followed the Securities and Exchange Commission procedures diligently. We were always confident in our position that the mergers were not roll ups and the court agreed with us.”
“This case continued for three and a half years and has been a significant expense to our shareholders.”“There is currently pending in Nevada a related case alleging essentially the same core claims that were made in the class action lawsuit. While the plaintiffs in the Nevada case opted out of the class action in favor of pursuing their own lawsuit, the claims arise from the same core argument - that the mergers resulted in a “roll up”, giving the plaintiffs special rights. Now that a court has heard all of the evidence and ruled in favor of Vestin, the company intends to continue to vigorously defend the Nevada lawsuit.” About Vestin Realty Mortgage II, Inc. Vestin Realty Mortgage II, Inc. is a real estate investment trust (“REIT”) that invests in commercial real estate loans. As of September 30, 2009, Vestin Realty Mortgage II, Inc. had assets of approximately $110.7 million. Vestin Realty Mortgage II, Inc. is managed by Vestin Mortgage, Inc., which is a subsidiary of Vestin Group, Inc., which is engaged in asset management, real estate lending and other financial services through its subsidiaries. Since 1995, Vestin Mortgage Inc. has facilitated more than $2.0 billion in lending transactions.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV