10th Cir. Affirms Dismissal of Suit By REIT Shareholders in Cash-Out Merger

The U.S. Court of Appeals for the Tenth Circuit Aug. 25 affirmed the dismissal of a would-be class securities suit against apartment real estate investment trust Archstone Smith Trust by shareholders who cashed out their shares after Archstone was acquired by Tishman Speyer Development Corp. in a 2007 merger (Katz v. Gerardi).

In a decision by Judge Timothy M. Tymkovich, the appeals court said one shareholder plaintiff, Infinity Clark Street Operating, improperly brought claims that could have been asserted in another pending action. Plaintiff Jack Katz, meanwhile, was not a “purchaser” of securities for 1933 Securities Act ...