NexPoint Agrees to Settle Suit Over Acquisition for $12 Million

A NexPoint Advisors LP unit has offered to pay $12 million to settle class securities claims on behalf of an acquired property investment firm’s shareholders, according to a federal court filing.

The deal to compensate Jernigan Capital Inc.'s former investors for an allegedly underpriced take-private offering warrants preliminary approval, the class representatives told Judge Jennifer L. Rochon, of the US District Court for the Southern District of New York, on Feb. 7.

Lead plaintiff John Erickson alleges he and other class members owned stock in Jernigan when it was publicly traded. The shareholders voted to sell the real estate investment ...