Settled: May 17, 2013
In March 2012, Labaton Sucharow filed a class action in the Supreme Court of the State of New York, County of New York which, along with several additional actions, was consolidated before Justice O. Peter Sherwood with the caption In re Empire State Realty Trust, Inc. Investor Litigation, under Index No. 650607/2012.
The actions were brought on behalf of the investors in various private and public companies, including the investors in Empire State Building Associates L.L.C., 60 East 42nd Street Associates L.L.C., and 250 West 57th Street Associates L.L.C. The actions arose out of a proposal to consolidate all of the subject entities into a REIT to be known as the Empire State Realty Trust, Inc., and to convert the equity interests owned by the investors into cash or interests in the REIT through a "roll up" transaction.
After several months of intensive discovery and negotiations, the parties reached a proposed settlement of the consolidated actions. The benefits of the settlement to the class include a $55 million cash payment, a tax deferral benefit for the investors valued at approximately $100 million, investor protections for the anticipated IPO of REIT stock, and important additional disclosures for the investors. By order dated February 21, 2013, the court preliminarily approved the settlement and preliminarily certified the class. On May 17, 2013, the court granted final approval to the settlement.