Chimicles & Tikellis LLP filed a lawsuit on behalf of holders of limited partnership units issued by TCC Equipment Fund, a California Limited Partnership, Textainer Equipment Income Fund II, L.P., Textainer Equipment Income Fund III, L.P., Textainer Equipment Income Fund, IV, L.P., Textainer Equipment Income Fund V, L.P., and Textainer Equipment Fund VI, L.P.
Each of the Textainer Partnerships was the subject of a sale, negotiated by the general partners, of all of their assets. According to the lawsuit, the result of this sale was the liquidation of the remaining assets of the Partnerships on terms that were fundamentally unfair to the limited partners.
The complaint alleges that the sale was fundamentally unfair because it was, first, a flawed bidding process that conditioned any bid on the Partnerships’ assets on a management contract with Textainer Equipment Management Limited, one of the general partners of the Partnerships. Second, the complaint alleges that the sale was fundamentally unfair because of the significant undervaluation of the assets, as the terms on which the assets were sold did not reflect the market conditions. In addition, the complaint alleges that in order to effectuate the sale, a series of materially misleading proxy statements were issued to solicit the proxies of the limited partners.
On January 30, 2008, the Court approved a settlement with one of the defendants — RFH, Ltd., the company that purchased the assets from the sale. Details of that settlement can be found at www.textainerclassaction.com. Litigation continues against the remaining defendants, and in an Order dated June 27, 2008, the Court denied Defendants’ motion for summary judgment stating that the Textainer Defendants “did not meet their initial burden of production to make a prima facia showing that there are no triable issues of material fact with respect to Plaintiffs’ claims.” And, the Court in the June 27, 2008 Order also denied Defendants’ motion for summary adjudication in all respects.
If you were a holder of units in the Textainer Partnerships, or would like more information about the lawsuit, please contact the attorneys below.
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