NEW YORK CITY — New Senior Investment Group Inc. (NYSE: SNR), a New York-based seniors housing REIT, has received $53 million as part of a settlement with members of its own Board of Directors, as well as the company’s largest investor (Fortress Investment Group) and operator (Holiday Acquisition Holdings LLC).
Of the total settlement, $14.5 million will go to attorneys’ fees and out-of-pocket expenses. The deal is subject to approval by the Delaware Court of Chancery.
In addition to the cash reward, SNR plans to make amendments to its certificate of incorporation and bylaws to eliminate the company’s classified board over a period of three years and elect directors by a majority of the votes cast in uncontested elections. The implementation of these changes is subject to approval by the company’s stockholders at the Company’s 2019 annual meeting.
The settlement resolves claims relating to the company’s 2015 public offering, acquisition of a 28-property portfolio from Holiday and management agreements with Fortress. Further details on the case were not released.
New Senior is one of the largest owners of seniors housing properties in the country, with 133 properties across 37 states. Just minutes after the settlement was announced, SNR released the details on its first-quarter earnings call, which will be held May 3.