New York law firm fishes for plaintiffs in LaSalle hotel suit

13-Apr-14 – A Wall Street law firm that specializes in class action lawsuits by investors says it is “investigating” the board of directors of LaSalle Hotel Properties, the real estate investment trust whose 46 hotels include two in River North.

Faruqi & Faruqi, LLP, announced on Friday it is looking into “potential breaches of fiduciary duties” in connection with an incentive plan to offer stock to LaSalle employees as bonus compensation. The 2014 Equity Incentive Plan will be voted on at the company’s annual meeting on May 7.

A proxy statement filed by LaSalle with the United States Securities and Exchange Commission on March 26 recommended shareholders approve the plan to issue 2.9 million shares of common stock. Certain employees would then be given the option of buying the stock at a minimum price during a specified time period.

“The issuance of the additional shares could have a substantial dilutive effect on the shares of LaSalle Hotel common stock,” said Juan Monteverde (left), a partner at the New York firm, in a news release.

The news release included an offer for more information at “no cost or obligation to you” and a disclaimer identifying it as “attorney advertising.”

A March 14 article by Forbes says the firm “has lately built a lucrative practice around suing companies over supposedly inadequate disclosures.”

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