Fortress REIT Investor Sues Over $640M Spinoff

Law360, Wilmington (January 3, 2017, 6:32 PM EST) -- A shareholder in a Fortress Investment Group LLC real estate investment trust has sued company directors and others in Delaware Chancery Court, claiming that a $640 million property spinoff last year benefited insiders at shareholders' expense.

New Senior Investment Group Inc. shareholder John Cumming says in Friday's derivative suit that Fortress, which owns and controls New Senior, arranged to sell a portfolio of 28 Holiday Retirement Corp. senior-living properties to New Senior in June 2015 for an “inflated,” $640 million price.

The lawsuit says the deal...
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