Investors will get a few extra days to vote on a proposed management change at Rep. Robert Pittenger’s former real estate firm, which has been under scrutiny from federal investigators.
The vote has been moved to Friday, April 29, from Sunday to make sure all investors have an opportunity to vote, said Adam Doerr, a lawyer representing investors who helped reach the agreement. The vote so far has been “very positive,” he said.
Major investors in Pittenger Land Investments have agreed to forgo potential legal claims in a settlement that would end the Pittenger family’s role in the firm the Charlotte Republican founded more than three decades ago. The remaining investors are voting on the deal.
Attorneys representing the investors have said they had concerns about how the company was run, including undisclosed loans, undocumented expenses, and mark-ups applied to land purchases, according to documents outlining the deal.
Suzanne Pittenger, the congressman’s wife and now president of the company, has said she welcomes the deal, but believes PLI has “always acted in the best interest” of the company’s investors. Robert Pittenger, who transferred the company to his wife after he was elected to Congress, disclosed the federal investigation in August and has repeatedly denied wrongdoing.
Under the settlement, PLI would receive $6 million but give up an investment stake that could be worth as much as $30 million, according to notices sent to investors. New management would then take over administration of the company, according to the documents.