CommonWealth REIT Shareholder Alleges Management Enriched Itself At Company's Expense And Seeks Damages And To Enjoin Further Self-dealing In Lawsuit Filed By Chimicles & Tikellis LLP
The repercussions of this misconduct and the negative impact on CWH's financial condition became apparent on August 8, 2012 when management announced that it would need to cut CWH's quarterly dividend, resulting in CWH's stock price dropping nearly 10%. This led to a securities fraud class action that exposes CWH to substantial damages and litigation costs. The alleged misconduct has rendered the Company and its shareholders vulnerable to a buy out at a discounted price and, indeed, on February 26, 2013, shareholders Corvex Management, LP and Related Fund Management, LLC lodged a public attack on CWH's management and threatened to offer to buy all of the Company's stock at a price these shareholders believe is substantially discounted.
Plaintiff alleges that the Court's intervention is needed to recover damages for the benefit of CWH and its shareholders, and to enjoin the Company's management from engaging in further self-dealing, mismanagement and waste of CWH's assets. Plaintiff also seeks to enjoin the recently-announced proposed Equity Offering and Tender Offer whereby CWH plans to sell 27,000,000 shares of its common stock to the market and use the proceeds to purchase certain of its senior notes.
At the outset of this Litigation, Plaintiff intends on attacking a self-serving bylaw unilaterally adopted by Defendants that seeks to prohibit CWH shareholders from having a Court resolve their investor grievances.
If you are interested in discussing your rights as a CWH shareholder and/or have information relating to the matter, please contact Plaintiff's counsel. You may also obtain a copy of the Complaint, or learn more about this action, on our websites.CONTACT INFORMATION: Nicholas E. Chimicles Kimberly Donaldson Smith ( firstname.lastname@example.org) Catherine Pratsinakis ( email@example.com) CHIMICLES & TIKELLIS LLP One Haverford Centre361 West Lancaster Avenue Haverford, PA 19041Telephone: (610) 642-8500Toll Free: (888) 805-7848Fax: (610) 649-3633Website: www.chimicles.com SHAPIRO HABER & URMY LLP 53 State Street Boston, MA 02109Telephone: (617) 439-3939 Toll Free: 800-287-8119Email: SHU@shulaw.com Website: www.shulaw.com For over 30 years, the Firms have pursued hundreds of securities, consumer and shareholder rights cases and recovered billions of dollars for their clients. The Firms are nationally recognized, and their litigators hold many professional honors and distinctions.
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