In Business This Week
PRUDENTIAL OFFERS VMS INVESTORS A DEAL
Part of the morass of investor lawsuits against VMS Realty Partners is nearing settlement, but investors shouldn't expect to see much of their money back. Prudential Securities, which sold $560 million in VMS partnerships, has tentatively agreed to a settlement pool of $20 million, plus a cut of any asset sales or refinancing of VMS properties. VMS has agreed to pour $3.5 million into the pool.
Herbert Beigel, a lawyer representing some VMS investors, claims the settlement represents nearly 80% of Pru's $25 million gain from selling the partnerships. But the former VMS investors, who at one point claimed they had lost $2 billion, still must decide whether to accept the proposed deal.EDITED BY HARRIS COLLINGWOOD