New Senior Investment Group would receive $53 million under a settlement to resolve a lawsuit filed in December 2016 over the real estate investment trust’s 2015 public offering and acquisition of a 28-property senior living portfolio from Holiday Acquisition Holdings and the REIT’s management agreements with Fortress Investment Group, New Senior announced Wednesday.
The agreement must be approved by the court.
The lawsuit originally was brought on behalf of the company against its board members, Fortress and its affiliates, and Holiday.
As part of the settlement, New Senior agreed to ask stockholders to vote on corporate governance changes at the REIT’s 2019 annual meeting. The changes, if approved, would eliminate the REIT’s classified board over three years and would require that directors in uncontested elections be elected by a majority of votes cast.
New Senior also agreed that plaintiff’s counsel will request that the court approve a $14.5 million fee and expense award to cover attorneys’ fees and out-of-pocket expenses.