Delaware Court Of Chancery Issued Ruling In Whitestone's Favor; Regarding Case Whitestone REIT Operating Partnership, L.P. v Pillarstone Capital REIT
Portfolio Pulse from Benzinga Newsdesk
The Delaware Court of Chancery ruled in favor of Whitestone REIT in its case against Pillarstone Capital REIT. The court found that Pillarstone's adoption of a 'Poison Pill' breached the covenant of good faith and fair dealing, causing harm to Whitestone. Whitestone is now allowed to redeem its units without repercussions and may receive a monetary judgment against Pillarstone for the difference in value of the partnership's assets compared to December 2021, plus interest.
January 25, 2024 | 9:32 pm
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Whitestone REIT (WSR) won a legal battle against Pillarstone Capital REIT, allowing for the redemption of units and potential monetary judgment for the value difference of assets since December 2021.
The court ruling in favor of Whitestone REIT is a significant legal victory that removes uncertainties regarding the redemption of its units and opens the possibility of a monetary judgment. This positive outcome is likely to be viewed favorably by investors and could lead to a short-term increase in WSR's stock price, reflecting the potential financial benefits and the resolution of the legal dispute.
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