PARADISE WIRE & CABLE DEFINED BENEFIT v. WEIL

No. 18-1483.

918 F.3d 312 (2019)

PARADISE WIRE & CABLE DEFINED BENEFIT PENSION PLAN; Hollingsworth, Mendenhall and McFadden, LLC; IG Holdings, Incorporated; IG Revocable Trust; Dr. Stuart Wollman; Sheila Rosenberg; Rene Demeule, Individually on Behalf of Themselves and All Others Similarly Situated, Plaintiffs-Appellants, v. Edward M. WEIL, Jr.; American Realty Capital Retail Advisor, LLC; David Gong; Lisa D. Kabinick; Stanley Perla; Nicholas Radesca; Leslie D. Michelson; Edward G. Rendell; American Realty Capital—Retail Centers of America, Incorporated; AR Global Investments LLC; American Finance Trust, Incorporated, Defendants-Appellees.

United States Court of Appeals, Fourth Circuit.

Decided: March 11, 2019.


Attorney(s) appearing for the Case

ARGUED: Jeffrey Simon Abraham , ABRAHAM, FRUCHTER & TWERSKY, LLP, New York, New York, for Appellants. George Stewart Webb, Jr. , VENABLE LLP, Baltimore, Maryland, for Appellees. ON BRIEF: John B. Isbister , TYDINGS & ROSENBERG, LLP, Baltimore, Maryland, for Appellants. John T. Prisbe , Michael J. Wilson , VENABLE LLP, Baltimore, Maryland, for Appellees American Finance Trust, Inc. and American Realty Capital—Retail Centers of America, Incorporated. Reid M. Figel , David L. Schwarz , Daniel V. Dorris , KELLOGG HANSEN TODD FIGEL & FREDERICK PLLC, Washington, D.C., for Appellees American Realty Capital Retail Advisor, LLC, AR Global Investments LLC, Nicholas Radesca and Edward M. Weil, Jr. , Jay A. Dubow , Matthew D. Foster , Christopher B. Chuff , PEPPER HAMILTON LLP, Philadelphia, Pennsylvania, for Appellees David Gong, Lisa Kabinick, and Stanley Perla. Eric N. Whitney , Jeffrey A. Fuisz , ARNOLD & PORTER KAYE SCHOLER LLP, New York, New York, for Appellees Leslie D. Michelson and Edward G. Rendall.

Affirmed by published opinion. Judge Quattlebaum wrote the opinion, in which Judge Niemeyer and Judge Duncan joined.


This case arises from the merger of American Realty Capital — Retail Centers of America, Inc. ("RCA") and American Finance Trust, Inc. ("AFIN"). After the merger, the shareholders of RCA discovered information about AFIN's financial condition that indicated AFIN was worth less and was less healthy than represented...

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