Wheeler REIT Settles $7.125M Securities Class Action Lawsuit with Claim Depot

Investors who owned or purchased Wheeler Real Estate Investment Trust Inc. common stock between Aug. 16, 2021, and Sept. 20, 2023, may qualify for a monetary settlement resulting from a class action lawsuit. The lawsuit alleged that Wheeler’s directors and associated parties violated their fiduciary obligations according to Maryland law. As part of the settlement, the individual and fund defendants of Wheeler Real Estate Investment Trust agreed to pay $7,125,000 to resolve the claims.

The class eligible for the settlement includes investors who fall into either of the following categories: those who held shares of Wheeler common stock as of Aug. 16, 2021, or those who bought shares between Aug. 16, 2021, and Sept. 20, 2023. Both individuals and entities are considered eligible for participation, and holding the Wheeler common stock at the present time is not a requirement.

The total settlement amount earmarked for distribution is $7,125,000. The sum each class member will receive is contingent on various factors, such as the number of valid claims submitted, the recognized losses of individual claimants determined by the court-approved allocation plan, deductions for legal fees, expenses, taxes, and settlement administration costs. Payments will be disbursed on a pro rata basis. Only claimants who experienced a net loss on Wheeler common stock transactions during the specified class period will be entitled to receive compensation.

In the event that the total value of submitted claims surpasses the allocated fund, payments will be adjusted on a pro rata basis. Claimants whose anticipated payments are less than $10 will not receive a distribution. The deadline for submitting a claim is March 24, 2026. To file a claim, class members can either do so online or download, fill out, and mail the PDF claim form to the settlement administrator at the provided address.

Class members must furnish proof of their Social Security number or taxpayer identification number’s last four digits, along with details of their Wheeler common stock transactions, including trade dates, share quantities bought or sold, as well as the total purchase or sale prices. Substantiating documentation, like broker confirmation slips, account statements, or broker-issued transaction details, is required. Claims submitted on behalf of another entity should be accompanied by evidence of authority to act.

Upon final court approval and the resolution of any potential appeals, eligible class members will receive their payments. The litigation underlying the settlement alleged that Wheeler’s directors and related funds engaged in actions that purportedly undermined the value of Wheeler common stock. Wheeler and the named defendants, while denying any wrongdoing or liability, opted for a settlement to avoid the uncertainties, costs, and delays of continued legal proceedings.