This case centered on a rollup transaction in which several real estate limited partnerships created by Equitec were combined into one publicly traded master limited partnership.
Retained by Weil, Gotshal & Manges and by Latham & Watkins
This case centered on a rollup transaction in which several real estate limited partnerships created by Equitec were combined into one publicly traded master limited partnership. Our clients, counsel for the sponsor of the master limited partnership offering, disputed the plaintiffs’ contention that their security interests had lost value in the transaction.
We worked with an industry expert, a finance expert, and a real estate expert. After several months of trial, the case settled.
We worked with an industry expert, a finance expert, and a real estate expert to provide testimony on national real estate trends, local real estate valuation issues, and Rule 10b-5 and Section 11 damages rebuttal. The experts found that, based on sales and dispositions of comparable properties, the likely returns from selling the subject properties and liquidating the partnerships were no greater (and most likely less) than the returns from creating the rollup. Additionally, the increase in value associated with the greater liquidity of a publicly traded master limited partnership security offset the rollup fees paid by the plaintiffs and therefore did not reduce the value of their holdings. After several months of trial, the case settled.