Under terms of the agreement, JDN will pay the class members an aggregate $16.8 million in cash and 1.68 million shares of common stock, according to the company's 8-K report, dated July 30. Those shares would be worth $20.16 million based on the price of JDN shares Dec. 3.
JDN also reached agreement to settle the derivative suits brought against certain of its officers and directors. Under the agreement, the company is required to formally adopt certain corporate governance policies and pay attorneys' fees by issuing 248,000 shares of common stock to the plaintiffs' counsel. At its recent price of $12 per share, those shares would be worth $2.98 million.
At its Nov. 15 hearing, the court concluded the settlement was fair, reasonable and adequate and in the best interests of JDN's shareholders, according to a prepared statement from the company.
On Nov. 29, the same federal court approved the terms of the related derivative lawsuit. The court has entered final orders and judgments dismissing all the claims in the securities class action and related derivative lawsuit involving the JDN Realty.
"This approval finalizes the settlements previously announced by the company in July and enables JDN to put to rest the most significant issues from the past," Craig Macnab, president and chief executive officer of JDN Realty Corporation, says in the statement. "Importantly, it allows the company to remove the cloud of uncertainty that has been associated with this litigation. We can focus squarely on the many business opportunities that lie ahead for our company."
JDN Realty Corp. develops and management retail shopping centers anchored by discount retailers. The company owns and operates more than 100 properties in 20 states. JDN shares are traded on the New York Stock Exchange.
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