New Senior Can't Duck Shareholder Suit Over $640M Merger

Law360 (February 21, 2018, 8:11 PM EST) -- New Senior Investment Group’s board and its once-removed corporate overlord, Fortress Investment Group, can’t dodge a derivative suit alleging that the senior housing REIT structured a $640 million deal to benefit Fortress at the expense of its own shareholders, Delaware’s Chancery Court said Tuesday.   

New Senior shareholder John Cumming says every member of the six-person board was deeply entangled with asset manager Fortress when it decided to pull the trigger on a 2015 deal to purchase another senior housing company indirectly owned by Fortress. Fortress and...
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