Chimicles & Tikellis LLP, Labaton Sucharow LLP, and Wolf Haldenstein Adler Freeman & Herz LLP Announce the Settlement of Class Action Litigation Involving Inland Western Retail Real Estate Trust, Inc.

CHICAGO, HAVERFORD, Pa., and NEW YORK, July 22, /PRNewswire-USNewswire/ -- Co-Lead Counsel Chimicles & Tikellis LLP, Labaton Sucharow LLP and Wolf Haldenstein Adler Freeman & Herz LLP announce the settlement of the class action lawsuit captioned City of St. Clair Shores General Employees Retirement System v. Inland Western Retail Real Estate Trust, Inc., Case No 07-C-6174 (N.D. Ill.) ("Lawsuit"), which was filed in November 2007 in federal district court in Chicago, Illinois.  The Court will hold a hearing on November 8, 2010 to determine whether the proposed Settlement should be finally approved as fair, reasonable, and adequate.

The Settlement provides for the return to Inland Western Retail Real Estate Trust, Inc. ("IWEST") of 9 million of the 37.5 million shares (valued by IWEST at the time of the Internalization at $10 per share, or $90 million for the returned shares), which were paid by IWEST in consideration for the purchase of its advisor and property managers as part of a 2007 "Internalization" transaction that was the subject of the Lawsuit.  The return of the 9 million shares represents a 24% reduction in the price paid by IWEST and its shareholders for the Internalization.  

The July 14, 2010 Stipulation of Settlement, which is subject to final approval by the Court, will resolve all claims that were filed in the Lawsuit against IWEST, The Inland Group, Inc., KPMG LLP, William Blair & Company LLC, certain IWEST officers and directors, and other defendants from whom IWEST purchased the advisor and property managers, (Collectively, "Defendants").  The Lawsuit, asserting violations of the federal securities laws and state common law, was filed on behalf of IWEST shareholders who were shareholders of record as of the close of business on August 31, 2007 ("Settlement Class") and who were entitled to vote on the matters proposed in a proxy solicitation ("Proxy").  The Proxy was filed by IWEST with the Securities and Exchange Commission ("SEC") on September 10, 2007 and was sent to IWEST shareholders.  It was amended or supplemented on October 10, October 12, and November 9, 2007.  The Proxy asked shareholders to approve, at IWEST's November 13, 2007 shareholder meeting, a transaction called the "Internalization", whereby IWEST would purchase its property managers and business advisor in exchange for 37.5 million IWEST shares, ("Internalization Consideration"). At that time, the Internalization Consideration had a deemed-value of approximately $375 million.  The Lawsuit raised the questions of whether the Proxy provided shareholders with sufficient information to intelligently vote on the Internalization, and whether the amount of the Internalization Consideration was fair.  Defendants have denied and continue to deny that they have committed any act or omission giving rise to any liability and/or committed any violation of law or act of negligence or misconduct.  Defendants' denial of liability appears in Section 8 of the Stipulation of Settlement.  

The Settlement provides that a significant portion of the Internalization Consideration -- nine million (9,000,000) shares of IWEST common stock – will be returned to IWEST. The proposed Settlement has the effect of reducing the Internalization Consideration from 37.5 million shares to 28.5 million shares and represents a 24% reduction of the Internalization Consideration. In light of the facts of this Lawsuit and the stage of the litigation, securing the return of a significant portion of the Internalization Consideration is an excellent resolution of the Lawsuit, and the proposed Settlement is fair, reasonable, and adequate and in the best interests of the Settlement Class.

Members of the Settlement Class should receive the Notice of Pendency and Proposed Settlement of Class Action (the "Class Notice") on or around August 3, 2010, which should be read in its entirety for a description of the terms of the Settlement. Copies of the Class Notice and related documents will be available at www.chimicles.com, by no later than August 4, 2010.   Inquiries Should be Directed to Co Lead Counsel:

About Chimicles & Tikellis LLP -- Chimicles & Tikellis LLP specializes in complex litigation with an emphasis on securities, antitrust, and consumer cases, and has offices in Haverford, PA and Wilmington, DE.  C&T is a leading class action law firm with a national practice that strives to advance the interests of its clients by recovering money they have lost and by obtaining other appropriate relief to which they are entitled.  C&T has succeeded in recouping billions of dollars of losses for its clients. For more information about C&T, please visit www.chimicles.com.

About Labaton Sucharow LLP -- Labaton Sucharow LLP, with offices in New York, New York and Wilmington, Delaware, is one of the country's premier law firms representing institutional investors in class action and complex securities litigation, as well as consumers and businesses in class actions seeking to recover damages for anticompetitive practices. The Firm has been a champion of investor and consumer rights for over 45 years, seeking recovery of current losses and necessary governance reforms to protect investors and consumers. Labaton Sucharow has been recognized for its excellence by the courts and its peers. More information about Labaton Sucharow is available at www.labaton.com

About Wolf Haldenstein Adler Freeman & Herz LLP -- Wolf Haldenstein Adler Freeman & Herz LLP is one of the nation's most prominent class action firms. Its Class Action Litigation Group has been recognized by courts throughout the country as effective and experienced in securities, consumer, ERISA and antitrust class actions and shareholder rights litigation. The firm has recouped billions of dollars on behalf of investors. Wolf Haldenstein is also a full-service firm with approximately 65 attorneys in various practice areas, and has offices in Chicago, New York City and San Diego. For more information about Wolf Haldenstein, please visit www.whafh.com.

SOURCE Chimicles & Tikellis LLP

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED