An investor in NYSE:AHP shares filed a lawsuit in Maryland against certain Ashford Hospitality Prime directors for allegedly modifying its rules to impose a hefty and under Maryland law allegedly illegal termination fee that effectively bars shareholders from ousting the current leadership.
Investors who purchased shares of Ashford Hospitality Prime Inc (NYSE:AHP) and currently hold any of those NYSE:AHP shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The plaintiff claims that certain directors of Ashford Hospitality Prime Inc breached their fiduciary duties owed to NYSE:AHP stockholders by implemented a change-in-control provision in its agreement with its external asset manager Ashford Inc. that would pay Ashford Inc roughly half the trust’s current market. More specifically, the plaintiff alleges that certain directors have taken actions that potentially penalize Ashford Hospitality Prime Inc financially by obligating it to pay its asset manager Ashford Inc, which is controlled by certain of the Director Defendants, an amount estimated to be in the range of $150 million, if shareholders elect a majority of new directors other than those certain directors or candidates approved by those certain directors. The plaintiff says that it was necessary to file the lawsuit to ensure that shareholders of Ashford Hospitality Prime Inc are able to vote for director candidates of their choosing without coercion from those certain directors.
Ashford Hospitality Prime Inc reported that its annual Total Revenue rose from $233.50 million in 2013 to $307.31 million in 2014 and that its Net Loss of $11.78 million in 2013 turned into a Net Income of $1.94 million in 2014. However, shares of Ashford Hospitality Prime Inc (NYSE:AHP) declined from $23 in November 2013 to as low as $8.37 per share on February 5, 2016
Those who purchased NYSE:AHP shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com