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Commitments and Contingencies
6 Months Ended
Jun. 30, 2011
Commitments and Contingencies [Abstract]  
Commitments and Contingencies

17. Commitments and Contingencies

 

From time to time, we and our unconsolidated investees are party to a variety of legal proceedings arising in the ordinary course of business. We believe that, with respect to any such matters that we are currently a party to, the ultimate disposition of any such matters will not result in a material adverse effect on our business, financial position or results of operations.

 

Following the announcement of the proposed merger, several lawsuits were filed.

 

In April 2011, the parties reached agreements in principle to settle their lawsuits. All parties thereafter executed a Stipulation and Release dated as of July 27, 2011. The proposed settlement remains subject to approval by the Maryland Court following notice to a class of all shareholders who held ProLogis common shares at any time between January 30, 2011 and June 3, 2011, the date the Merger was consummated (which shareholders we refer to as the “Class”). Under the terms of the proposed settlement, we agreed to make certain supplemental disclosures in the definitive joint proxy statement/prospectus mailed to shareholders. We further agreed to pay the lawyers who filed the Maryland and Colorado actions attorneys' fees and expenses in a cumulative amount up to $600,000, if and to the extent awarded by the Maryland Court, which amount has been accrued. If approved by the Maryland Court, the settlement will result in the dismissal of all pending merger litigation with prejudice (in both Colorado and Maryland) and in the release by the Class of all claims against us relating to the Merger.