Sunset Financial announces favorable verdict
By MortgageDaily.com staff
3/13/2006

A Florida real estate investment trust has won a lawsuit filed by stockholders.

Sunset Financial Resources Inc. announced the Circuit Court of Baltimore, Md., recently granted Sunset's motion for summary judgment on the lawsuit brought by Western Investment Hedged Partners LP and certain other stockholders.

The shareholders reportedly sought to nullify certain bylaw amendments adopted by Sunset's board of directors, alleging the amendments were adopted for the purpose of interfering with their efforts to remove and replace Sunset's board.

The court, however, found the enactment of Sunset's bylaw amendments to be valid. Among the court's statements were that it "does not view the board's actions as creating unfair obstacles to the exercise of plaintiffs' shareholder rights," and that Sunset's directors "acted in good faith," the Jacksonville, Fla.-based REIT reported.

"I am pleased that the court upheld the amendments made to the Company's bylaws, which we believe are in the best interests of Sunset stockholders," said Sunset President and Chief Executive George Deehan in the announcement.

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