INDIANAPOLIS, Sept. 11/PRNewswire-FirstCall
Simon Property Group, Inc. (NYSE: SPG) announced today that on September 10, 2003, the United States District Court for the District of Minnesota issued an order in an action commenced by Triple Five of Minnesota, Inc. challenging a 1999 restructuring transaction involving various Mall of America partnerships. Triple Five claimed it was denied the opportunity to participate in that restructuring transaction which involved a sale by Teachers Insurance & Annuity Association (“Teachers”) of a 27.5% interest in the Mall of America to SPG. The Court found that various entities and individuals other than SPG had violated fiduciary duties owed to Triple Five in connection with the negotiation and execution of the transaction. The Court also found that none of the defendants had engaged in “fraud” or “gross negligence.” Nevertheless, the Court imposed a constructive trust remedy upon SPG, finding that Triple Five is entitled to purchase that 27.5% interest in exchange for a payment of $81.38 million to SPG and that SPG must disgorge “net profits” received by SPG from 1999 to present.
SPG believes that the Court’s order is legally and factually wrong. Although the Court found that “Triple Five cannot make out a claim” against SPG, the Court ordered remedies that directly affect SPG’s interest in the Mall and may also directly affect entities not party to the lawsuit. SPG intends to vigorously contest the Court’s order.
Simon Property Group, Inc. (NYSE: SPG), headquartered in Indianapolis, Indiana, is a real estate investment trust engaged in the ownership and management of income-producing properties, primarily regional malls and community shopping centers. Through its subsidiary partnerships, it currently owns or has an interest in 239 properties containing an aggregate of 184 million square feet of gross leasable area in 36 states, as well as nine assets in Europe and Canada. Additional Simon Property Group information is available at www.simon.com.
SOURCE Simon Property Group, Inc