Vedder Thinking | News Vedder Price Represents Inland American Real Estate Trust, Inc. in Obtaining Dismissal of Shareholder Securities Suit
Law360 Reports the Case
On Monday, claims that Inland American Real Estate Trust, Inc. (Inland) and its directors inflated the company's stock prices were dismissed, with prejudice, by United States District Court Judge Harry D. Leinenweber. In his decision, the judge ruled that Inland repeatedly informed its shareholders that the stock prices set by the REIT’s board were only estimates of share value.
Law360 reported the case in its article "Inland Dodges Shareholder Stock Inflation Suit," and quoted Judge Leinenweber as saying, "The plaintiff’s theory of liability is not only implausible but nonexistent." In rejecting the plaintiff's argument that the directors violated a duty of candor, Judge Leinenweber further ruled that, under Maryland law, Inland's directors did not owe shareholders such a duty when acting in a managerial capacity.
Vedder Price Shareholder Thomas Cimino, Chair of the firm's Litigation practice area, Chairman of the firm's Financial Services Litigation practice group and lead counsel for Inland, stated, "We are gratified that the court focused on the completeness and transparency of Inland's public disclosures in holding that the board conducted itself in accordance with both those disclosures and Maryland law."
Shareholder Junaid Zubairi and Associate Jeanah Park of Vedder Price also represented Inland in this case.