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If you held shares of Jernigan Capital, Inc. common stock as of September 11, 2020, and your shares were sold for $17.30 per share in the going-private transaction, you may qualify to submit a claim for approximately $0.78 per share from a class action settlement.
Jernigan Capital, Inc., now known as NexPoint Storage Partners, Inc., has agreed to pay $12 million to settle a class action lawsuit for alleged violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934. The lawsuit claimed that the company issued a materially false and misleading proxy statement related to its going-private transaction, depriving shareholders of critical information needed to make an informed decision.
Who is eligible for a settlement payment?
- You must have held Jernigan Capital common stock as of September 11, 2020, the record date for eligibility to vote on the going-private transaction.
- Your shares were sold for exactly $17.30 per share in the transaction.
How much is the class action payout?
Claimants will receive a pro rata cash payment estimated to approximately $0.78 per share. Amount will be determined by the number of shares owned and the number of overall claims filed.
How to claim a class action rebate
To claim your settlement payment, class members must submit a valid Proof of Claim form by the June 10, 2025 deadline. You can file a claim online or download and print the PDF claim form to mail to the settlement administrator.
Settlement Administrator's mailing address: Jernigan Securities Settlement, Claims Administrator, c/o Verita Global, P.O. Box 301135, Los Angeles, CA 90030-1135
Required proof
Supporting documentation is required and can be in the form of:
- Broker statements
- Transaction confirmations
Claim payment options
Claimants will select one of the following:
- Check mailed to address provided
- Electronic payment
$12 Million settlement fund
The settlement fund of $12,000,000 will cover the following payments:
- Settlement administration costs: To be determined
- Attorneys' fees: Up to $4,000,000
- Attorneys' expenses: Up to $225,000
- Service award to Lead Plaintiff: Up to $10,000
- Payments to approved claimants: Remaining settlement amount after deductions
Important dates
- Fairness Hearing: May 29, 2025
- Deadline to File a Claim: June 10, 2025
When is the Jernigan Securities class action settlement payout date?
The fairness hearing will take place on May 29, 2025. Payments to class members with valid claims will be issued after the court grants the settlement final approval and claim processing is complete.
Why was there a lawsuit and settlement?
The lawsuit was filed because shareholders alleged that Jernigan Capital provided a misleading proxy statement regarding its going-private transaction. Specifically, the proxy allegedly failed to disclose material information about the role of Extra Space Storage Inc. in the transaction, misleading shareholders about the adequacy of the $17.30 per share price.
Defendants denied these allegations and asserted that they complied with all applicable laws. However, both sides agreed to settle to avoid the expenses associated with continued litigation.
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