MI Developments rejects dissident shareholders' action
July 08 2010 - 9:18AM
PR Newswire (Canada)
AURORA, ON, July 8 /CNW/ -- AURORA, ON, July 8 /CNW/ - MI
Developments Inc. ("MID") (TSX: MIM.A, MIM.B; NYSE: MIM) today
announced that it has learned through the media of the filing of a
Statement of Claim (commenced by a Notice of Action) against it and
certain of its current and former directors and officers with the
Ontario Superior Court of Justice by certain shareholders alleging,
among other things, that directors of MID breached their duties in
connection with certain transactions with Magna Entertainment Corp.
MID has not been served with this Statement of Claim or Notice of
Action. "We believe that this claim is entirely without merit,"
stated Dennis Mills, Vice-Chairman and Chief Executive Officer of
MID. "It appears that these shareholders filed their claim weeks
ago, on May 21, 2010, but decided not to serve it upon MID or any
of the other Defendants, to guard against the expiry of a
limitation period. This is the second claim of this nature
commenced against MID by dissident shareholders. The first claim
was determined by the courts to be entirely without merit and was
dismissed both at trial and on appeal. The shareholders were
admonished by the courts for their conduct in pursuing those
claims, and were required to pay the costs of MID on a substantial
indemnity basis. If and when the shareholders who have commenced
this new claim decide to pursue it, MID will defend the claim
vigorously and will once again seek the highest cost award possible
in the circumstances." About MID: MID is a real estate operating
company engaged primarily in the acquisition, development,
construction, leasing, management and ownership of a predominantly
industrial rental portfolio leased primarily to Magna International
Inc. and its automotive operating units in North America and
Europe. MID also acquires land that it intends to develop for
mixed-use and residential projects. Additionally, MID owns Santa
Anita Park, Golden Gate Fields, Gulfstream Park (including an
interest in The Village at Gulfstream Park, a joint venture with
Forest City Enterprises, Inc.), The Maryland Jockey Club, Portland
Meadows, AmTote and XpressBet, and through some of these assets, is
a supplier, via simulcasting, of live horseracing content to the
inter-track, offtrack and account wagering markets. For further
information about MID, please visit www.midevelopments.com or call
905-713-6322. At www.sedar.com and www.sec.gov you can also find
MID's filings. Forward-Looking Statements: This press release may
contain statements that, to the extent they are not recitations of
historical fact, constitute "forward-looking statements" within the
meaning of applicable securities legislation. Forward-looking
statements may include statements regarding MID's future plans,
goals, strategies, intentions, beliefs, estimates, costs,
objectives, economic performance or expectations, or the
assumptions underlying any of the foregoing. Words such as "may",
"would", "could", "will", "likely", "expect", "anticipate",
"believe", "intend", "plan", "forecast", "project", "estimate" and
similar expressions are used to identify forward looking
statements. Forward-looking statements should not be read as
guarantees of future events, performance or results and will not
necessarily be accurate indications of whether or the times at or
by which such future performance will be achieved. Undue reliance
should not be placed on such statements. Forward-looking statements
are based on information available at the time and/or management's
good faith assumptions and analyses made in light of our perception
of historical trends, current conditions and expected future
developments, as well as other factors we believe are appropriate
in the circumstances, and are subject to known and unknown risks,
uncertainties and other unpredictable factors, many of which are
beyond MID's control, that could cause actual events or results to
differ materially from such forward-looking statements. Important
factors that could cause such differences include, but are not
limited to, the risks set forth in the "Risk Factors" section in
MID's Annual Information Form for 2009, filed on SEDAR at
www.sedar.com and attached as Exhibit 1 to MID's Annual Report on
Form 40-F for the year ended December 31, 2009, which investors are
strongly advised to review. The "Risk Factors" section also
contains information about the material factors or assumptions
underlying such forward-looking statements. Forward-looking
statements speak only as of the date the statements were made and
unless otherwise required by applicable securities laws, MID
expressly disclaims any intention and undertakes no obligation to
update or revise any forward-looking statements contained in this
press release to reflect subsequent information, events or
circumstances or otherwise. about this press release, please
contact Dennis Mills, MID's Vice-Chairman and Chief Executive
Officer, at 905-726-7614
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