On February 20, 2020, the United States District Court for the Southern District of New York granted preliminary approval to a proposed settlement and dismissal of the Hospitality Investors Trust, Inc. shareholder derivative action. The initial complaint in this action was filed on February 26, 2018 and alleged breaches of fiduciary duty by the company.
The proposed settlement provides for a cash payment to HIT of $15,181,108.47, less any Court-awarded attorneys’ fees and expenses and contribution award to the Plaintiff. The settlement also provides for the tendering of an aggregate of 83,504 shares of company common stock to HIT.
The Court has scheduled a hearing for June 9, 2020 at 10:30 a.m. in Courtroom 443, 40 Foley Square, New York, NY 10007 to determine whether to grant final approval to the settlement.
Because this is a derivative action, not a class action, the settlement provides for payments directly to HIT and there is no claim form for company shareholders to complete. A copy of the notice of settlement can be accessed here.