Lund also supported Triple Five's requests for legal relief, including issuing a clarifying order that would bar the Simon Group from using "poison pill" provisions in its partnership agreements with the pension fund to thwart Triple Five from gaining the disputed 27.5% interest and management control of the retail-entertainment complex.
Triple Five has contended Lund's clarifying orders are needed to carry out US District Judge Paul Magnuson's ruling last fall that gives Triple Five management control of the mall and the right to increase its ownership stake to 50%. Simon's attorneys object to Lund's recommendations, and argue changes cannot be made while the dispute is on appeal. Triple Five's attorney Roger Magnuson welcomed Lund's report, and hopes the ownership change will soon be completed.
Until 1999,the teachers' group held a 55% stake in the Mall of America with the remaining 45% split between Simon, which manages the complex, and the Ghermezian family, the founders of the project. When the teachers' pension fund sold half of its interest to Simon, Triple Five sued Simon, several executives and affiliated businesses for breach of fiduciary duty. The appeals' court has not set a date yet for oral arguments.
Earlier this month, GMAC Commercial Mortgage, the servicer of a $312-million mortgage on the Mall of America, filed a lawsuit recently in federal court in Minneapolis to prevent the transfer of control of the mall to the Ghermezian brothers until it consents to the deal. Last month, Lund recommended that the Ghermezian brothers be awarded $30 million of the mall's profits since 1999. Lund's series of recommendations go to Magnuson, who will decide how much money to award to the Ghermezians.
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