Court Rejects Yung s Lawsuit Against Lodgian

ATLANTA A Delaware court has confirmed that Lodgian, Inc. was in full compliance with all applicable laws when it scheduled its annual meeting for October 12, 2000.

In its decision, the court agreed with Lodgian that William Yung s group had no basis for initiating a lawsuit relating to the scheduling of Lodgian s annual meeting.

Mr. Yung has made statements in his proxy materials that implied that Lodgian had acted improperly and had scheduled its annual meeting only as a result of Mr. Yung s already existing lawsuit. That action, as reported previously by HOTELBUSINESS., was filed in the Delaware Court of Chancery, seeking the reversal of recent Lodgian board actions reducing the number of directors on its board and revising the way directors are elected. At that time, Lodgian CEO Robert Cole was quoted as saying, [W]e re neither trying to block attempts by Yung and his associates from winning seats on our board, nor are we trying to thwart his efforts to purchase the company if he so desires. – Jay Nussbaum (9/1/00)