July 20, 2015 (Shareholders Foundation) - An investor who currently holds shares of Home Properties, Inc. (NYSE:HME), filed a lawsuit in effort to halt the proposed takeover of Home Properties, Inc. by an affiliate of Lone Star Funds for $75.23 per share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:HME stockholders by agreeing to sell Home Properties, Inc. too cheaply via an unfair process to an affiliate of Lone Star Funds.

On June 22, 2015, Home Properties, Inc. (NYSE:HME) announced that it has entered into an agreement to be acquired by an affiliate of Lone Star Funds, in a transaction valued at approximately $7.6 billion, including the assumption of existing debt. Under the terms of the Merger Agreement, Lone Star Funds will acquire all of the outstanding common stock of Home Properties for $75.23 per share in an all-cash transaction.

However, the plaintiff claims that the proposed consideration NYSE:HME shareholders will receive is grossly inadequate and undervalues Home Properties, Inc. Indeed, at least one analyst has set the high target price for NYSE:HME shares at $79.00 per share and NYSE:HME shares traded as recently as April 28, 2015, as high as $75.41 per share in the open market. Furthermore, Home Properties, Inc. reported that its annual Total Revenue rose from $522.25 million in 2011 to $671.91 million in 2014 and that its Net Income increased from $25.11 million 2011 to $92.45 million in 2014. Shares of Home Properties, Inc. (NYSE:HME) grew from $44.40 per share in July 2010 to as high as $75.41 per share in April 2015. In addition, the plaintiff claims that the process is also unfair to NYSE:HME stockholders.