REIT Wheeler's stock more than doubles after appellate court dismisses class-action suit
By Ciara Linnane
Suit related to REIT's acquisition of Cedar Realty Trust in 2022
Wheeler real-estate investment Trust's stock rallied 117% Friday, after an appellate court dismissed a class-action suit against the company relating to its acquisition of Cedar Realty Trust Inc. in August of 2022.
The suit was brought by owners of Cedar's preferred stock against Cedar, Wheeler (WHLR) and Cedar's former board of directors.
The ruling from the U.S. Court of Appeals for the Fourth Circuit affirmed the 2023 order of the U.S. District Court for the District of Maryland, and stated that "courts are not time machines for disgruntled buyers. We resolve legal claims. And [p]laintiffs do not adequately allege that [d]efendants violated any legal right or duty - they only allege that they regret the terms they bargained for."
Virginia Beach, Va.-based Wheeler, which is focused on owning and operating income-producing retail properties with a primary focus on grocery-anchored centers, acquired all of Cedar's outstanding common stock to complement its business.
Cedar, which was originally based in New York, also specializes in retail properties with a focus on grocery-anchored shopping centers in the Northeast. The company's portfolio consists of 18 properties with about 2.7 million square feet of gross leasable area.
M. Andrew Franklin, chief executive of Wheeler and Cedar, welcomed the ruling.
"With this matter behind us, both companies remain well-positioned to execute on their strategic plans," he said in prepared remarks.
Wheeler's stock is down 75% in the year through Thursday's close, while the S&P 500 has gained 15%.
-Ciara Linnane
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
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09-06-24 1022ET
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