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$12 million settles suit by investors
Real estate trust tied to Southmark awaits court approval of settlement
REDWOOD CITY -- National Realty Limited Partnership, one of the largest publicly traded real estate partnerships in the United States, has agreed to a more than $12 million settlement in a San Mateo County class-action suit filed by stockholders.
National Realty is tied to financially crippled Southmark Corp. of Dallas and its tangled web of limited partnerships and publicly traded real estate investment trusts. National Realty owns about 95 properties, mostly apartment complexes, across the United States.
A similar suit against National Income Realty Trust and Continental Mortgage and Equity Trust, two Oakland-based real estate investment trusts with ties to Southmark, was settled in March 1990. Those two trusts, like National Realty, are headed by Gene Phillips and William Friedman, former chairman and vice chairman, respectively, of Southmark.
The complex National Realty settlement, which is scheduled for court approval June 29, establishes targets for the price of each share of National Realty units, creates an audit committee and calls for a $5.5 million payment to the partnership by the defendants.
"It's just a case of needing to settle a class …