Summary by Moomoo AI
On September 4, 2024, the United States Court of Appeals for the Fourth Circuit affirmed the 2023 Order dismissing a putative class action complaint against Wheeler Real Estate Investment Trust and Cedar Realty Trust. The lawsuit was filed by purported holders of Cedar's preferred stock following Wheeler's acquisition of Cedar's outstanding common stock in August 2022.The complaint alleged breach of contract related to Cedar's preferred stock terms, breach of fiduciary duty against Cedar's former directors, and tort claims against Wheeler. The appellate court's published opinion emphasized that courts resolve legal claims rather than serve as "time machines for disgruntled buyers," noting that plaintiffs failed to adequately allege any violation of legal rights or duties.M. Andrew Franklin, CEO of both Cedar and Wheeler, expressed satisfaction with the Fourth Circuit's decision, viewing it as a positive outcome that allows both companies to focus on executing their strategic plans. Cedar, now a wholly-owned subsidiary of Wheeler, operates 18 properties with approximately 2.7 million square feet of gross leasable area.
