Public Storage

Date filed: 09/07/11

Class period:

Court: Superior Court for the State of California, County of Los Angeles

NASDAQ:

ABRAHAM, FRUCHTER & TWERSKY, LLP FILES CLASS ACTION ON BEHALF OF PARTNERSHIPS ACQUIRED BY PUBLIC STORAGE IN A RELATED PARTY TRANSACTION

On September 7, 2011, Abraham, Fruchter& Twersky, LLP filed a class action lawsuit asserting claims for breach of fiduciary duty in the Superior Court for the State of California, County of Los Angeles, on behalf of the class of Limited Partners in the following limited partnerships – Public Storage Partners, Ltd., Public Storage Partners II, Ltd., Public Storage Properties, Ltd., Public Storage Properties IV, Ltd., and Public Storage Properties V, Ltd.(collectively, the “Partnerships”) – whose partnership units were acquired by defendant Public Storage through a merger transaction that closed on August 23, 2011.  Named as defendants are Public Storage, PS Orangeco Partnerships, Inc., an entity formed to acquire the Partnerships, and B. Wayne Hughes, the Chairman of Public Storage.

This action seeks to recover monetary damages for the Limited Partners arising from the unfairly low sales price defendants engineered for the sale of the Partnerships’ assets to Public Storage.  In particular, the complaint alleges that the prices paid by Public Storage to the Limited Partners were unfair and failed to fully reflect the value of the assets owned by the Partnerships because, among other things, they were based on appraisals failing to utilize an appropriate capitalization rate (“Cap Rate”), i.e., multiple to cash flow, based upon the value assigned by the market to similar assets. The Limited Partners were not given either an opportunity to vote on the Transaction or any opportunity to seek an appraisal remedy.  Instead, the only choice the Limited Partners received was whether to take their consideration in the form of cash or Public Storage common stock.

Contact Us

If you were a Limited Partner of the Partnerships and wish to discuss this matter further you can contact Jeffrey S. Abraham of Abraham, Fruchter& Twersky, LLP at jabraham@aftlaw.com or 212-279-5050.