This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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 ( kimdonaldson@chimicles.com) Catherine Pratsinakis ( cpratsinakis@chimicles.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.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs