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Paul Malmfeldt has over 20 years of experience representing investors in complex matters, including shareholder derivative and class actions. Most recently, Paul has focused his practice on class actions actions alleging violations of federal securities laws. For example, Paul served as co-lead counsel in the GWG Securities Litigation in the Northern District of Texas which resulted in a $50.95 million recovery for bondholders.
Paul also has substantial experience litigating fiduciary duty claims on behalf of investors in non-listed public companies. For example, in Magowski v. The Parking REIT, Inc. et al. (Circuit Court for Baltimore City No. 24-C-19-003125 (consolidated)), Paul represented an investor in a class and derivative action challenging the amount of equity consideration that the REIT paid to an insider in connection with the internalization of its business advisor. The case resulted in a settlement with a value over $9.25 million.
In Milliken v. American Realty Capital Hospitality Advisors, LLC et al. (U.S. District Court S.D.N.Y. No. 1:18-cv-1757), Paul represented a stockholder of Hospitality Investors Trust, Inc. (f/k/a American Realty Capital Hospitality Trust, Inc.), challenging the REIT’s property management arrangements with its affiliated property managers, payment of certain advisory fees to its affiliated advisor, and payment of consideration in connection with the termination of those management and advisory arrangements, achieving a derivative settlement of over $15 million.
In Trumbo et al. v. The Inland Group et al. (Circuit Court of Cook County, IL No. 13-CH-07790), Paul represented stockholders of InvenTrust Properties Corp. (f/k/a Inland American Real Estate Trust, Inc.), prosecuting derivative claims relating to the REIT’s payment of performance-based asset management fees to its affiliated advisor which resulted in a $11.1 million settlement.
In Gamburg et al. v. Hines Real Estate Investment Trust, Inc. et al. (Circuit Court for Baltimore City No. 24CV16004496), Paul prosecuted class and derivative claims on behalf of stockholders of Hines Real Estate Investment Trust, Inc., challenging the calculation of a profits interest in the REIT’s operating partnership held by the owners of its affiliated advisor. The case resulted in a $3.25 million settlement.
In Lang et al. v. Last Atlantis Capital Management LLC et al. (Circuit Court of Cook County, IL No. 08-CH-46044), Paul originated a derivative action on behalf of investors in a commodity pool, prosecuting claims against the fund’s introducing and clearing brokers, the fund’s manager, and the manager’s officers. He subsequently became lead counsel for the fund’s court-appointed receiver, achieving a substantial recovery for the receivership estate.
Paul has an A.B. magna cum laude in Economics from Bowdoin College (1998) where he was a James Bowdoin Scholar and a J.D. cum laude from the University of Illinois College of Law (2005) where he was an editor of the Illinois Business Law Journal. He is admitted to practice in Illinois.