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NEW YORK–(BUSINESS WIRE)–The following statement is being issued by Chimicles Schwartz Kriner & Donaldson-Smith LLP and Blau & Malmfeldt regarding the Settlement in the Hospitality Investors Trust, Inc. Shareholder Derivative Litigation:

IN THE UNITED STATES DISTRICT COURT

FOR THE SOUTHERN DISTRICT OF NEW YORK

TOM MILLIKEN, derivatively on behalf of HOSPITALITY INVESTORS TRUST, INC.,

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Plaintiff,

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v.

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No. 18-CV-1757 (VEC)

 

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AMERICAN REALTY CAPITAL HOSPITALITY ADVISORS, LLC, et al.,

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Defendants,

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-and-

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HOSPITALITY INVESTORS TRUST, INC.,

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Nominal Defendant.

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SUMMARY NOTICE OF PROPOSED SETTLEMENT AND SETTLEMENT HEARING

TO: ALL CURRENT RECORD HOLDERS AND BENEFICIAL OWNERS OF SHARES OF HOSPITALITY INVESTORS TRUST, INC. (“HIT” OR THE “COMPANY”) (“CURRENT HIT SHAREHOLDERS”)

YOU ARE HEREBY NOTIFIED THAT the Court has preliminarily approved a proposed Settlement and dismissal of the above-captioned shareholder derivative action (the “Derivative Action”), that fully and completely releases the claims of HIT shareholders asserted in the Derivative Action in exchange for the cash payment to HIT of $15,181,108.47 and the tendering by certain Defendants of an aggregate of 83,504 shares of Company common stock to HIT. The cash payment to HIT will be reduced by any Court-awarded attorneys’ fees and expenses to Plaintiff’s Counsel and contribution award to Plaintiff in recognition of the substantial benefit they conferred on the Company in achieving the Settlement.

YOU ARE HEREBY FURTHER NOTIFIED THAT a hearing will be held on June 9, 2020 at 10:30 a.m. before the Honorable Valerie Caproni, United States District Judge, at the United States District Court for the Southern District of New York, Courtroom 443, 40 Foley Square, New York, New York 10007, to determine whether the proposed Settlement and Plaintiff’s Counsel’s application for an award of attorneys’ fees, reimbursement of expenses, and payment of a case contribution award in the aggregate amount of $2,250,000 should be granted final approval as fair, reasonable, and adequate.

YOUR RIGHTS MAY BE AFFECTED BY THESE LEGAL PROCEEDINGS. If the Court approves the Settlement, you will forever be barred from contesting the approval of the proposed Settlement and from pursuing the released claims. This is a “shareholder derivative action,” not a “class action.” Thus, the Settlement provides for payments directly to HIT, and there is no claim form for Company shareholders to complete. Current HIT shareholders who have no objection to the Settlement do not need to appear at the Settlement Hearing or take any other action. If you do not object to the proposed Settlement by May 26, 2020, you will be bound by the final judgment of the Court and will forever be barred from raising an objection to such Settlement in this or any other action or proceeding and will be forever barred from pursuing any of the released claims.

THIS NOTICE IS ONLY A SUMMARY. IT DOES NOT DESCRIBE ALL THE DETAILS OF THE STIPULATION AND PROPOSED SETTLEMENT. The full details of the Stipulation and Proposed Settlement and other papers filed in the Derivative Action can be obtained at the United States District Clerk’s office, 500 Pearl Street, Room 120, New York, NY 10007, at any time during regular business hours of each business day. The Notice of Settlement of Shareholder Derivative Litigation and Stipulation are also available on the Investor Relations section of the Company’s website, www.hitreit.com, or by contacting Plaintiff’s Counsel: Kimberly M. Donaldson-Smith, Chimicles Schwartz Kriner & Donaldson-Smith LLP, 361 West Lancaster Avenue, Haverford, PA 19041, Phone: (610) 642-8500, Email: [email protected]; or Paul D. Malmfeldt, Blau & Malmfeldt, 566 West Adams Street, Suite 600, Chicago, Illinois 60661, Phone: (312) 443-1600, Email: [email protected].

PLEASE DO NOT CALL, WRITE, OR OTHERWISE DIRECT QUESTIONS ABOUT THIS MATTER TO EITHER THE COURT OR THE CLERK’S OFFICE.

Contacts

Media Contact:
Kimberly M. Donaldson-Smith

Partner, Chimicles Schwartz Kriner & Donaldson-Smith LLP
Phone: (610) 642-8500

Paul D. Malmfeldt

Partner, Blau & Malmfeldt

Phone: (312) 443-1600