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REAL ESTATE : Presley Cos., Shareholders Approve $6-Million Investment Settlement

November 10, 1994|Debora Vrana, Times staff writer

Presley Cos. has agreed to a $6-million settlement with shareholders who filed a class-action lawsuit in 1992 against the Newport Beach home builder charging that it misled investors.

The shareholder group, contending that the company overstated the value of its real estate portfolio to investors when it sold a $70-million initial public offering in 1991, sued the company; its chairman, William Lyon; its chief executive, Wade H. Cable; and offering underwriter Kidder, Peabody & Co.

"It's a fair deal and a good settlement for shareholders," said Edward Gergosian, the San Diego attorney for the shareholders. Presley officials would not comment. The company's shareholders have until Dec. 10 to submit comments on the proposal to the judge. If a majority agree with the settlement, U.S. District Judge Gary Taylor is expected to approve it in Santa Ana on Dec. 19.

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