A lawsuit was filed by an investor in shares of Associated Estates Realty Corporation (NYSE:AEC) in effort to stop the proposed takeover and NYSE:AEC stockholders should contact the Shareholders Foundation.

San Diego, CA -- (ReleaseWire) -- 05/27/2015 --An investor in shares of Associated Estates Realty Corporation (NYSE:AEC) filed a lawsuit in effort to stop the proposed takeover of Associated Estates Realty Corporation by a real estate fund managed by Brookfield Asset Management.

Investors who purchased shares of Associated Estates Realty Corporation (NYSE:AEC) and currently hold any of those NYSE:AEC shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:AEC stockholders by agreeing to sell Associated Estates Realty Corporation too cheaply via an unfair process to Microchip Technology Incorporated.

On April 22, 2015, Associated Estates Realty Corporation (NYSE:AEC) announced its Board of Directors has approved a merger agreement under which a real estate fund managed by Brookfield Asset Management will acquire all outstanding shares of common stock of Associated Estates Realty Corporation (NYSE:AEC) for $28.75 per share in cash.

However, the plaintiff claims that the proposed transaction is the product of a hopelessly flawed 'process' which, to the detriment of the company's public shareholders, was conducted at the behest of the real estate investment firm Land & Buildings, a short-term shareholder and activist investor. The plaintiff alleges that the proposed consideration NYSE:AEC shareholders will receive is grossly inadequate and undervalues Associated Estates Realty Corporation. Indeed, Associated Estates Realty Corporation reported that its annual Total Revenue rose from $149.62 million in 2011 to $194.08 million in 2014 and that its respective Net Income increased from $5.33 million to $144.71 million. Shares of Associated Estates Realty Corporation (NYSE:AEC) grew from $13.77 per share in August 2013 to as high as $26.03 per share in March 2015. In addition, the plaintiff claims that the process is also unfair to NYSE:AEC stockholders. The plaintiff says that the merger agreement contains preclusive deal protection devices, such as a no solicitation, a four-day matching rights period, and a $60 million termination provision, that prevent other competing offers.

On May 19, 2015, NYSE:AEC shares closed at $28.58 per share.

Those who are current investors in Associated Estates Realty Corporation (NYSE:AEC) shares have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com