Case Information: General Growth Properties
Updated On: October 30th, 2011
General Growth Properties Notice of Settlement
General Growth Properties Proof of Claim
Order Perliminarily Approving Settlement
On March 16, 2009, Izard Nobel LLP was appointed as Lead Counsel in a class action lawsuit filed in the United States District Court for the Northern District of Illinois. The action is on behalf of those who purchased the common stock of General Growth Properties, Inc. ("General Growth" or the "Company") (NYSE: GGP) between April 30, 2008 and October 26, 2008 (the "Class Period").
On April 21, 2009, Plaintiff filed an Amended Complaint. On May 20, 2009, the Defendants filed a motion to dismiss the action. Plaintiffs filed a reply to Defendnats' Motion to Dismiss on June 26, 2009. On September 17, 2009, the court entered an order denying in part and granting in part defendants' motions to dismiss. On January 12, 2010 the parties reached a mediated settlement in the amount of $15.5 million. On February 24, 2010, the Court granted preliminary approval of the settlement. On May 19, 2010 to the Court held a hearing to consider whether final approval of the settlement should be granted. On May 21, 2010, the Court entered an order granting final approval of the settlement and awarding attorneys' fees. On September 30, 2011, the Court entered an Order authorizing distribution of the Settlement Funds.
In order to participate in the distribution of the settlement, Class Members were required to send a Proof of Claim Form to the Claims Administrator's Office, post-marked no later than July 19, 2010, to the following address:
General Growth Securities Litigation
c/o FRG Information Systems Corp.
P.O. Box 460, Peck Slip Station
New York, NY 10272
The Claims are currently being processed by the Claims Administrator.
The Complaint charges that defendants violated federal securities laws. Specifically, defendants represented that General Growth had the ability to refinance billions of dollars in debt that was coming due in the fall of 2008 and spring of 2009 on acceptable terms. In fact, General Growth did not have access to such financing. Further, defendants failed to disclose that the Company's President and its Chief Financial Officer had received loans from the Chief Executive Officer's family trust in violation of the Company's Code of Business Conduct and Ethics.
On September 22, 2008, General Growth announced that it was pursuing a comprehensive evaluation of its financial and strategic alternatives. On October 3, 2008, the Company suspended its dividend and then, on October 27, 2008, announced it was marketing for sale its portfolio of retail properties in Las Vegas. On this news, General Growth's stock fell from $21.42 on September 19, 2008 to less than $2.00 per share on October 27, 2008.