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JCAP.US
id: 1492

Jernigan Capital (JCAP) Investor Settlement

The settlement funds have been distributed to claimants.
$12,000,000
Cash Settlement
S.D. New York
Court
1:20-cv-09575
Case number
09/11/2020
Class period Start
06/10/2025
Claim deadline
Jernigan Capital ($JCAP) has agreed to a $12M settlement with investors to resolve claims that it misled them about its going-private transaction with NexPoint Advisors.

Overview


In 2020, Jernigan was accused of hiding that Extra Space Storage had invested $300M in Jernigan Capital during the merger with NexPoint Advisors to secure management rights over its properties. After this was revealed, Jernigan faced a lawsuit from investors.

Timeline
  • November 6, 2020 – Jernigan became a privately held REIT under NexPoint and Extra Space Storage.
  • November 9, 2020 – Jernigan disclosed for the first time Extra Space’s involvement, including its $300M investment and management rights.
  • November 13, 2020 – Investors filed a lawsuit, claiming material misrepresentations during the merger.
  • February 7, 2025 – Jernigan agreed to a $12M settlement to resolve investor claims.

Background


In 2020, Jernigan Capital, a publicly traded real estate investment trust (REIT), agreed to a $900M acquisition by NexPoint Advisors.

Shareholders were told that other REITs had limited interest in acquiring Jernigan’s portfolio, justifying the $17.30 per share price.

On November 9, 2020, just days after the merger closed, Jernigan Capital disclosed for the first time that Extra Space Storage had invested $300M in the deal and secured management rights over Jernigan’s properties.

Shortly after, investors filed a lawsuit claiming Jernigan hid Extra Space’s involvement in the merger and undervalued their shares, leading them to accept a lower buyout price.


What Can Investors Expect Now?


Jernigan Capital ($JCAP) has agreed to settle $12M with investors to resolve claims that it misled them about its going-private transaction with NexPoint Advisors.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Type
US Securities Class Action
Case Status
Disbursed
Alleged Offence
Misleading Statements, 
Financial Misrepresentation, 
Fraud, 
Failure to Disclose
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.78
Filing date
04/06/2021
Plaintiffs
John R. Erickson
Attorneys
Robbins Geller Rudman & Dowd LLP
Defendants
John A. Good; Mark O. Decker; James Dondero; Howard A. Silver;
Judge
Mary Kay Vyskocil
Administrator
Gilardi & Co LLC
Court hearing date
05/29/2025
Exclusion deadline
05/08/2025
Objection deadline
05/08/2025
Attorney fee
$4,225,000
Trades matching type
FIFO

Frequently Asked Questions

Who is eligible for this settlement?
Do I have to sell securities to be eligible?
How long does the payout process take?
How much will my payment be?
What is 11th Estate?

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