By Attorney Popular Publications

MSF in Bloomberg

Investors last year filed five class actions, or group lawsuits, accusing the company and Malkin of breaching their fiduciary duty. The trust announced a $55 million settlement of the cases in November.

Sherwood gave preliminary approval to the settlement in February and denied a motion by Andrew Penson, owner of Manhattan’s Grand Central Terminal, and the other investors opposing the deal to intervene in the case.

Sherwood did allow them to argue their claim that the $100 buyout provision is illegal. A final hearing on the settlement is set for tomorrow.

Stephen Meister, an attorney for the opponents, said yesterday he would seek a stay of the proceedings. He declined to comment today on when that would be.

The Malkins said last month they would leave voting open until Sherwood rules on the $100-a-share buyout or until tomorrow’s hearing on the class-action settlement.

Opponents can avoid being bought out if they change their vote to "yes" within 10 days after receiving written notice that the 80 percent approval has been achieved, a time frame Meister called "impermissibly short."

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Attorneys Mentioned: Stephen B. Meister

“After stopping that brazen plan, we learned that hedge funds Cerberus and Centerbridge offered Lichtenstein immense protections and inducements to file bankruptcy,” Meister said in an e-mailed statement. “None of these banks or hedge funds is looking to preserve and stabilize the hotel chain as they would have you think.”

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Attorneys Mentioned: Stephen B. Meister

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