New Senior Investment Group, Inc.
A derivative lawsuit was filed against New Senior Investment Group’s board and its once-removed corporate parent company, Fortress Investment group, alleging that the senior housing REIT structured a $640 million deal to benefit Fortress at the expense of its own shareholders.
New Senior shareholder John Cumming says every member of the six-person board was deeply entangled with asset manager Fortress when it decided to pull the trigger on a 2015 deal to purchase another senior housing company indirectly owned by Fortress.
On February 20, 2018 Vice Chancellor Joseph R. Slights III denied in its entirety the defendants’ motion to dismiss. He also chose to apply the hard-to-overcome “entire fairness” standard of review to the case.