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Kentucky Court Approves $7.4 Million Settlement of NTS Realty Holdings Limited Partnership Class Action Lawsuit

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Published July 28, 2015

On April 24, 2014, Jefferson County Circuit Court of the Commonwealth of Kentucky approved the settlement of a class action against NTS Realty Holdings Limited Partnership (the "Company") and its Board of Directors and certain of its executive officers. The action is captioned, Stephen J. Dannis, et al. v. J.D. Nichols, et al., Case No. 13-CI-00452. Levi Korsinsky LLP as co-lead counsel obtained a 23% increase in the merger consideration (from $7.50 to $9.25 per unit) for a total benefit of $7.4 million for the unit holders of the Company. The settlement was achieved after two years of hard fought litigation, challenging the entire fairness of the going-private squeeze-out merger by NTS’s controlling unitholder and Chairman, Defendant Jack Nichols. The unitholders bringing the action alleged that Nichols' proposed transaction grossly undervalued NTS’s units. The 23% increase in merger consideration achieved by Levi Korsinsky LLP was a remarkable result given that on October 18, 2013, the Special Committee appointed by the Board of Director's had terminated the existing merger agreement with Nichols. Through counsel's tenacious efforts the transaction was resurrected and improved by 23%.