Chimicles & Tikellis LLP brought suit on behalf of a class of investors who purchased units of eight limited partnerships known as Real Estate Associates Limited, Real Estate Associates Limited II-VII and Housing Programs Limited (the REAL Partnerships) alleging violations of federal securities laws through the dissemination of false and misleading consent solicitation statements. The solicitation statements sought the unitholders consent to the sale of certain limited partnership interests to a Real Estate Investment Trust (REIT), owned and controlled by the general partner of the REAL Partnerships. The challenged transaction resulted in substantial benefits to the general partner of the Real Partnerships while creating tax liability for the unitholders, in excess of the distributions they received, as a result of the transaction. After five years of litigation, including a six-week jury trial resulting in a substantial verdict for the Class, the parties achieved an $83 million settlement on behalf of the Class. Under the terms of the settlement, benefits are being distributed over a period of five years.

   Friday, July 04th, 2008