WILMINGTON, Del., July 15, 2015 (GLOBE NEWSWIRE) -- Labaton Sucharow LLP filed an amended class action complaint today asserting claims against the members of Trade Street Residential, Inc.’s Board of Directors (Board) for breaching their fiduciary duties to its shareholders in connection with the proposed sale of Trade Street Residential, Inc. (Trade Street) to Independent Realty Trust, Inc. (IRT). The complaint also charges certain hedge funds holding large interests in Trade Street with aiding and abetting those breaches and unjust enrichment.
According to the complaint, on May 11, 2015, Trade Street announced that its Board agreed to sell the company to IRT in a deal in which current Trade Street stockholders would receive a mix of cash and IRT stock purportedly valued at $7.60 (the proposed transaction) for each share of Trade Street common stock. The complaint alleges that the actual consideration being offered to Trade Street shareholders is presently closer to $7.00 per share. In addition to providing current Trade Street stockholders grossly inadequate consideration, the complaint alleges, the proposed transaction is the end result of a self-interested scheme by which two hedge funds, Senator Investment Group and Monarch Alternative Capital, surreptitiously took control of Trade Street and are now able to quickly and profitably exit their investment through a forced sale of the company. The complaint further claims the proposed transaction is unfair to stockholders due to the involvement of a third hedge fund, BHR Capital, which owns more than five percent of Trade Street’s common stock and (1) began purchasing substantial amounts of IRT stock while Trade Street was exploring a deal with the company and (2) had a conflicted representative on Trade Secret’s Board that the Board members inexplicably permitted to be involved in the proposed transaction process.
Plaintiffs, represented by Labaton Sucharow, seek to recover monetary damages resulting from the proposed transaction as well as all unjust benefits obtained by the three named hedge funds.
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Labaton Sucharow represents many of the largest pension funds in the United States and internationally with collective assets under management of more than $2 trillion. With nearly 60 full-time attorneys, Labaton Sucharow's litigation reputation is strengthened by its in-house team of investigators, financial analysts, and forensic accountants. The Firm has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Labaton Sucharow's offices are located in New York, NY and Wilmington, DE. More information about Labaton Sucharow is available at www.labaton.com.