Will the $90 million be returned to them. Is this for the Vanguard Real Estate Index fund?
VEREIT® Enters Into Settlement Agreement and Release with Vanguard
https://www.prnewswire.com/news-releas ... 63769.html
PHOENIX, June 11, 2018 /PRNewswire/ -- VEREIT, Inc. (NYSE: VER) announced today that on June 7, 2018, VEREIT, Inc. and VEREIT Operating Partnership, L.P. (collectively "VEREIT" or the "Company") entered into a Settlement Agreement and Release (the "Settlement Agreement") to settle the previously disclosed litigation with Vanguard Specialized Funds, and other Vanguard funds serving as plaintiffs in the action pending in the United States District Court for the District of Arizona captioned Vanguard Specialized Funds, et al. v. VEREIT, Incorporated, et al., No. CV-15-02157-PHX-JAS (the "Action", and such plaintiffs, "Vanguard"). Vanguard's claims arose out of the disclosures made by the Company in October 2014 and March 2015 regarding its financial statements, which included the Company's March 2015 restatement of certain of its previously issued financial statements.
Pursuant to the terms of the Settlement Agreement, the parties have agreed that Vanguard will dismiss all claims against the Company and the other defendants with prejudice and the Company will pay Vanguard the sum of $90 million in connection with the settlement of the claims. The Settlement Agreement contains mutual releases by both Vanguard and the Company, although the Company retains the right to pursue any and all claims against the other defendants in the Action and/or third parties, including claims for contribution for amounts paid in the settlement. The Settlement Agreement does not contain any admission of liability, wrongdoing or responsibility by any of the parties.
VEREIT is pleased to have brought Vanguard's lawsuit to a conclusion. Vanguard's holdings accounted for approximately 13 percent of VEREIT's outstanding shares of common stock held at the end of the period covered by the various pending shareholder actions.
Vereit to pay Vanguard $90 million for Schorsch real estate firm losses
http://www.philly.com/philly/blogs/inq- ... 80611.html
It was “accounting fraud,” Vanguard had alleged, that “enabled Schorsch and other senior ARCP insiders to reap hundreds of millions of dollars in improper transaction fees, commissions, and compensation.” The “scheme” boosted the bonus pool for Schorsch and other insiders “by nearly $100 million in excess of any authorization.”
The fraud became public on Oct. 29, 2014 when the company made public its own audit committee report admitting it had “intentionally” misreported and failed to correct income calculations, that its internal financial reporting controls were defective, and that two of Schorsch’s top aides were leaving. The stock plunged, eventually losing more than half its value.