In re CNL Hotels & Resorts, Inc. Sec. Litigation
In a major shareholder securities class action, our attorneys obtained dismissals of claims against the chairman and vice chairman of CNL Hotels & Resorts (the nation's second-largest hotel real estate investment trust) and a number of its affiliates, including its advisor and managing broker-dealer. The suit claimed that CNL obscured its financial condition around the time the company was preparing a merger agreement and public stock offering. The complaints sought money damages, recessionary remedies, and various injunctions relating to the proposed merger of the REIT with its advisor. Shortly before a scheduled jury trial, the case settled under terms that did not require payment by any of our clients. The total settlement was for almost $40 million.