REIT Directors Duck Investor Suit Over $41M Loan Write-Down

Law360 highlights a decision by U.S. District Judge Louis L. Stanton who stated that a proposed class of Resource Capital Corp. shareholders could not pursue a suit on behalf of the real estate investment trust without the board of directors’ approval. Mark Gimbel, who represents the board and officers, said, “We are pleased with the court’s decision, which dismissed all of the plaintiffs’ claims and recognized that the plaintiffs had failed to plead any reason to second guess the good faith or business judgment of Resource Capital’s board."

In addition to Gimbel, the Covington team also included Christopher Yeung and William O’Neil.