Newtown, PA: (Nov-05-07) Two lawsuits including one class action, were filed against GMH Communities Trust, a leading provider of housing, lifestyle, and community solutions for college students and members of the US military and their families, over the company's common shares between May 5, 2005 and March 10, 2006. One of the actions was filed by the unit holders in the company's operating partnership stemming from similar claims to those made under the company's class action litigation. Sources claimed that the lawsuits stemmed from the company's announcement of the restatement of its financial results for the first three quarters of 2005.
As part of a settlement reached, officials confirmed that the company had agreed to resolve the dispute with lead plaintiffs, dismissing all claims against it without admission or presumption of liability or wrongdoing. The settlement is contingent upon various conditions, including but not limited to, final approval by the Eastern District Court of Pennsylvania after notice to the class and a final court hearing.
As per the terms, the company stated that its insurance carrier has agreed to pay a substantial portion of the settlement amounts and legal expenses related to the defense of both matters. Spokespersons stated that a charge of approximately $2.2 million will be recorded by the company inclusive of its contribution to the settlement amounts and legal expenses associated with defending the matters. [
