Redimere Advisors LLC v. Plymouth Industrial REIT, Inc. (Unregistered Broker's $60M Merger Injunction Denied)
In the Business Litigation Session of Suffolk County Superior Court, Justice Kenneth W. Salinger denied Redimere Advisors LLC's emergency motion to enjoin, or alternatively escrow $60 million in proceeds from, Plymouth Industrial REIT's $2.1 billion all-cash take-private acquisition by Makarora Management LP and Ares Alternative Credit funds. The court dismissed all of Redimere's claims to a roughly $20 million oral success fee, holding the fee was both outside the scope of Redimere's written engagement letter and unenforceable because Redimere acted as an unregistered broker on a securities transaction.
Why it matters
Confirms that unregistered intermediaries cannot use oral fee arrangements to claim a cut of a REIT M&A transaction, and shows courts' reluctance to freeze merger proceeds or delay a closing on a contested, legally weak fee claim. Relevant to REITs and advisory firms alike in structuring and enforcing deal-introduction and success-fee agreements.
Read the full write-up and case timeline
The complete analysis of this matter, with its procedural history and practical takeaways.
Open the full matterGet an email when a matter like this is filed
Set up a free watchlist for reit & securities matters in Massachusetts, or for the tenants, borrowers and guarantors in your portfolio.
Create a watchlistMore reit & securities matters
Other matters in Massachusetts
CREdocket summarizes public court records and reporting; see our sourcing standards and corrections log. Not legal advice. Facing something similar? Contact us.