If you’re an eligible Diamond Resorts stockholder you should know that a proposed settlement to a class action shareholder lawsuit was filed on Nov. 1, 2019. The suit (Appel v. Berkman, No. 12844-VCMR) was originally filed by a Diamond Resorts stockholder against former Diamond Resorts directors and Apollo Management VIII, LP. In 2016 an Apollo Global Management affiliate bought out the timeshare company for $2.2 billion.
The proposed settlement and other court documents can be viewed here DiamondResortsWatch.org/court-documents.
The “Stipulation and Agreement of Compromise, Settlement and Release” proposed a settlement of $25.5 million and from that award proposed an aggregate amount up to 25% towards attorneys’ fees plus reimbursement of attorney expenses . The settlement would include a broad release of claims applicable to all class members.
Diamond Resorts’ August 2016 Amended 10-K filing stated 69,705,619 shares of common stock were outstanding as of Feb 5, 2016 . Diamond Resorts’ management, board of directors and related entities together held 25.5% of the outstanding common stock . The proposed settlement award, less legal fees and expenses, would be distributed to only a certain number of stockholders who qualify as eligible class members (generally defined as stockholders who sold Diamond stock between June 29, 2016 through September 2, 2016 ), excluding defendant directors .
If you’re not happy with the settlement award, UNITE HERE Local 5 would like to speak to you to discuss options and actions that could be taken.
Call us as soon as possible .
The court gave preliminary approval to the settlement with some modifications on Nov 11, 2019 , the order is available at DiamondResortsWatch.org/court-documents. In its order, the court set a hearing date for the proposed settlement on Feb 20, 2020.
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