Summary by Moomoo AI
On September 5, 2024, Wheeler Real Estate Investment Trust Inc. and its subsidiary Cedar Realty Trust, Inc. announced the affirmation by the United States Court of Appeals for the Fourth Circuit of a 2023 dismissal of a class action lawsuit. The lawsuit, filed by purported holders of Cedar's preferred stock, was originally dismissed by the United States District Court for the District of Maryland. The appellate court supported the lower court's decision, stating that the plaintiffs did not adequately allege any legal rights violations. The lawsuit had accused Cedar and its former directors of breach of contract and fiduciary duty, and Wheeler of tort claims, following Wheeler's acquisition of Cedar's common stock in August 2022. With the dismissal upheld, CEOs of both companies, M. Andrew Franklin, expressed satisfaction and emphasized that both Wheeler and Cedar can now focus on their strategic plans. Cedar, now a wholly-owned subsidiary of Wheeler, operates as a REIT focusing on grocery-anchored shopping centers in the Northeast, while Wheeler focuses on income-producing retail properties.