LaSalle

Practice Area: 
Stock Symbol: 
LSO
Case Status: 
Investigations

Ademi & O’Reilly, LLP is investigating the Board of Directors of LaSalle Hotel Properties (NYSE: LSO) for possible breaches of fiduciary duty and other violations of Maryland law in connection with the sale of LaSalle to Blackstone.

Ademi & O’Reilly, LLP alleges LaSalle’s long-term financial outlook is improving and yet LaSalle shareholders will receive only $33.50 in cash for each share of LaSalle common stock they own.  Blackstone is well aware of LaSalle’s improving financial metrics and is purchasing LaSalle at a substantial discount.  The merger agreement unreasonably limits competing bids for LaSalle by (i) prohibiting solicitation of any further bids, and (ii) imposing a termination penalty should LaSalle receive and accept a superior bid. LaSalle insiders, their affiliates and other major shareholders own significant voting stock, and will receive millions of dollars as part of change of control arrangements, and therefore can unduly influence a sale of LaSalle. Our investigation centers on the conduct of LaSalle’s Board of Directors, who have unanimously approved the transaction, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for LaSalle given its current financial condition and prospects.