Jernigan Capital (JCAP) Investor Settlement
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.
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.
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 $300M in the deal and secured management rights over Jernigan’s properties.
Shortly after, investors filed a lawsuit claiming Jernigan hid Extra Space’s involvement in the merger and undervalued their shares, leading them to accept a lower buyout price.
Jernigan Capital ($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.
Frequently Asked Questions
All holders of Jernigan Capital, Inc. common stock as of September 11, 2020, the record date for eligibility to vote on the transaction, whose shares were sold for $17.30 in the transaction, are eligible to participate in this settlement.
No, you do not need to sell your Jernigan Capital, Inc. securities to be eligible. If you purchased securities within the class period, you can participate in the settlement and choose to retain or sell your securities at your discretion.
The entire payout process typically takes between 4 to 9 months after the claim deadline. However, the exact timing can vary depending on court proceedings and settlement administration processes.
The final payout amount depends on your specific transactions and the total number of investors who submit valid claims. If 100% of eligible investors file claims, the estimated payout is approximately $0.78 per share. However, typically only about 25% of investors file claims, which could increase the average recovery.
11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:
1. Prepare documents for your payout
2. Audit the claim and make sure you get the maximum possible payout
3. File a claim with the settlement administration
4. Correspond with the settlement administration to resolve emerging issues
5. Deliver payout directly to your brokerage account
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.