Wheeler Real Estate Investment Trust directors, along with hedge funds that took over the company, have agreed to pay $7.1 million to settle shareholder class claims that they improperly diluted its common stock.
The deal is fair and should receive preliminary approval, lead investor Daniel Khoshaba told the US District Court for the Eastern District of Virginia on Wednesday. The amount represents about 20% of the $35 million maximum estimated damages, said Khoshaba, who served as Wheeler’s CEO before allegedly being forced out.
Khoshaba alleges that Joseph Stilwell, principal of Stilwell Value LLC and other funds making up the so-called ...
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