One day prior to release of its third-quarter financial results,GMHannounced that it had settled a class-action shareholders lawsuitand related litigation. Without disclosing the amount of thesettlement, GMH said a "substantial portion" was covered byinsurance and its net charges, including a portion of thesettlement and legal fees, would total $2.2 million in this year'sfirst nine months.

During the third-quarter conference call, Gary Holloway Sr.,president, chairman and CEO, said, "we were prepared to vigorouslydefend ourselves," but felt the settlement would have minimumimpact to FFO. All claims have been dismissed without admission orpresumption of liability or wrongdoing.

While the company continues to revamp its student housingportfolio through dispositions, joint-venture partnerships andintensified management, the net loss in that division for thequarter fell to $7.4 million, based on revenue of $45.8 million.That compares with a net loss of $6.9 million on revenue of $41.3million in the same quarter a year ago.