Piedmont Office Realty Trust PDM
today announced that it has reached agreements in principle to settle the two
securities class action suits filed against the company and others in 2007
regarding disclosures in certain SEC filings. The settlements, which are
subject to court approval following the negotiation and execution of
definitive agreements and notice to the classes, will resolve the appeals and
result in the final disposition of both cases.
The first suit challenged disclosures made in connection with Piedmont's April
2007 internalization transaction. On September 26, 2012, the Court granted
Defendants' motion for summary judgment, and entered judgment in Defendants'
favor dismissing all claims.
The second suit challenged disclosures made in separate 2007 Piedmont SEC
filings relating to a tender offer and a charter amendment. On August 27,
2012, the Court granted Defendants' motion to dismiss, and entered judgment in
Defendants' favor dismissing all claims. Plaintiffs had recently appealed
both judgments to the Eleventh Circuit Court of Appeals.
Under the terms of the proposed settlements, Plaintiffs will dismiss the
appeals of both suits and release all Defendants from liability in exchange
for a total cash payment by Piedmont and its insurers of $4.9 million in the
first suit, and $2.6 million in the second suit. While Piedmont has denied
the allegations of these suits and has denied any liability to Plaintiffs,
Piedmont's non-defendant independent directors approved the settlements to
eliminate the uncertainties, burden and expense of further protracted
litigation. The settlement amounts are within the respective limits of
Piedmont's directors and officers' liability insurance policies, and Piedmont
intends to seek recovery of the full amount of the settlements from its
insurance carriers; however, the amounts that will ultimately be recovered
from the carriers is uncertain.
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