Jernigan
Settlement of In re Jernigan Capital, Inc. Securities Litigation
No. 1:20-cv-09575-JLR-KHP
The parties have reached a settlement of this action, pending in the United States District Court for the Southern District of New York. The settlement provides for the payment of $12 million for the benefit of eligible Class Members. Lead Plaintiff alleged violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934. The action arose from alleged material misrepresentations and omissions in the proxy disclosures issued in connection with Jernigan Capital’s going-private transaction, through which affiliates of NexPoint Advisors, L.P. acquired Jernigan’s publicly traded common stock for $17.30 per share in cash. Lead Plaintiff alleged, inter alia, that defendants failed to disclose that Extra Space Storage Inc., a leading self-storage REIT, participated directly in the transaction by providing $300 million—approximately one-third of the total purchase price—in exchange for rights to Jernigan’s real estate portfolio and representation on the post-transaction board. Lead Plaintiff further alleged that the $17.30 per share consideration was unfair and inadequate.
The Class consists of all holders of Jernigan common stock as of September 11, 2020, the record date for eligibility to vote on the Transaction, whose shares were sold for $17.30 in the Transaction. Excluded from the Class are: (a) Defendants, their Immediate Family Members, any legal representatives, heirs, successors or assigns of the Defendants and/or their Immediate Family Members, and any entity in which Defendants and/or their Immediate Family Members have or had a controlling interest; and (b) the officers and directors of the Company at all relevant times, their Immediate Family Members, any legal representatives, heirs, successors or assigns of the officers and directors of the Company at all relevant times and/or their Immediate Family Members, and any entity in which the officers and/or directors of the Company at all relevant times and/or their Immediate Family Members have or had a controlling interest. Also excluded from the Class are those Persons who timely and validly requested exclusion in accordance with the requirements set forth by the Court.
The settlement was approved by the Court on May 29, 2025.
If you have any questions about the settlement or the litigation, please contact the Shareholder Relations Department at 1-800-449-4900.
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