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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000950134-04-000017.txt : 20040105
<SEC-HEADER>0000950134-04-000017.hdr.sgml : 20040105
<ACCEPTANCE-DATETIME>20040105145318
ACCESSION NUMBER:		0000950134-04-000017
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20031217
ITEM INFORMATION:		Other events
FILED AS OF DATE:		20040105

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERICAN REALTY INVESTORS INC
		CENTRAL INDEX KEY:			0001102238
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE OPERATORS (NO DEVELOPERS) & LESSORS [6510]
		IRS NUMBER:				752847135
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-15663
		FILM NUMBER:		04504067

	BUSINESS ADDRESS:	
		STREET 1:		1800 VALLEY VIEW LANE
		STREET 2:		SUITE 300
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75234
		BUSINESS PHONE:		4695224200

	MAIL ADDRESS:	
		STREET 1:		1800 VALLEY VIEW LANE
		STREET 2:		SUITE 300
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75234
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d11644e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
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<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="center"><FONT size="4"><B>SECURITIES AND EXCHANGE COMMISSION</B>
</FONT>

<P align="center"><FONT size="3"><B>Washington, D.C. 20549</B>
</FONT>

<P align="center"><FONT size="5"><B>FORM 8-K</B>
</FONT>

<P align="center"><FONT size="3"><B>CURRENT REPORT</B>
</FONT>
<P align="center"><FONT size="3"><B>Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934</B>
</FONT>
<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">

<TR valign="bottom">
    <TD width="53%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD COLSPAN="2" valign="top"><FONT size="2">Date of Report (Date of earliest event reported)</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
December&nbsp;17, 2003</FONT></TD>
</TR>
<TR>
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD COLSPAN="2" align="left" valign="top"><FONT size="2">
<HR size="1" noshade></FONT></TD>
</TR>
</TABLE>
</DIV>

<P align="center"><FONT size="6"><B>American Realty Investors, Inc.</B>
</FONT>

<DIV align="center"><HR size="1" noshade width="100%">
</div>
<DIV align="center"><FONT size="2">(Exact name of registrant as specified in its charter)</FONT></DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">

<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><FONT size="2">Nevada</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2">
1-15663
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2">75-2847135</FONT></TD>
</TR>
<TR>
    <TD align="center" valign="top"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2">
<HR size="1" noshade>
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><FONT size="2">(State or other jurisdiction<BR>
of Incorporation)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2">
(Commission<BR>
File Number)
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2">(IRS Employer<BR>
Identification No.)</FONT></TD>
</TR>
</TABLE>
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">

<TR valign="bottom">
    <TD width="82%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">1800 Valley View Lane, Suite&nbsp;300, Dallas, Texas</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" valign="top"><FONT size="2"><br>
</FONT></TD>
    <TD align="center" valign="top"><FONT size="2">
75234<br>
</FONT></TD>
    <TD nowrap valign="top"><FONT size="2"><br>
</FONT></TD>
</TR>
<TR>
    <TD COLSPAN="5" align="right" valign="top"><FONT size="2">
<HR size="1" noshade>
</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">(Address of principal executive offices)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" valign="top"><FONT size="2"><br>
</FONT></TD>

    <TD nowrap valign="top"><FONT size="2">(Zip Code)<br>
</FONT></TD>
    <TD align="right" valign="top"><FONT size="2">
<br>
</FONT></TD>
</TR>
</TABLE>
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">

<TR valign="bottom">
    <TD width="39%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="2" valign="top"><FONT size="2">Registrant&#146;s telephone number, including area code</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
469-522-4200</FONT></TD>
</TR>
<TR>
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top"><FONT size="2">
<HR size="1" noshade></FONT></TD>
</TR>
</TABLE>
</DIV>

<P align="center"><HR size="1" noshade width="100%">
<div align="center"><FONT size="2">(Former name or former address, if changed since last report)
</FONT></div>
<P align="center"><FONT size="2">-1-
</FONT>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>




<!-- link2 "Item&nbsp;5. Other Events and Regulation&nbsp;FD Disclosure" -->
<DIV align="left"><A NAME="000"></A></DIV>
<DIV align="left"><A name="a000"></A></DIV>
<P align="left"><FONT size="2"><B>Item&nbsp;5. Other Events and Regulation&nbsp;FD Disclosure</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During August&nbsp;2002, American Realty Trust, Inc., a Georgia corporation
(&#147;ART&#148;), which is a wholly-owned subsidiary of American Realty Investors, Inc.,
a Nevada corporation (&#147;ARL&#148; or the &#147;Issuer&#148;), obtained a favorable jury verdict
in the case styled <I>American Realty Trust, Inc. and Basic Capital Management,
Inc. v. Matisse Capital Partners LLC, et al.</I>, in the United States District
Court for the Northern District of Texas in Case No.&nbsp;3:00-CV-1810-G. However,
the judge set aside the jury verdict and imposed a judgment against ART
notwithstanding the verdict in the approximate amount of $6,000,000
including interest. ART and Basic Capital Management, Inc. (&#147;BCM&#148;) appealed
the judgment to the United States Court of Appeals for the Fifth Circuit as
Case No.&nbsp;02-11148. On December&nbsp;17, 2003, the United States Court of Appeals
for the Fifth Circuit (the &#147;Appellate Court&#148;) entered its opinion reversing the
lower court judgment and rendering a new judgment in favor of ART consistent
with the original jury verdict and remanding the case back to the District
Court for a determination of the amount of attorneys&#146; fees to be awarded to
ART.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The case involved breach of contract and breach of fiduciary claims
brought by ART and BCM against former financial consultants, including separate
counts for breaches of the duties of care and of loyalty. The Appellate Court
found that the jury&#146;s original verdict against Defendants Matisse Capital
Partners LLC (&#147;Matisse&#148;) and Paul Bagley (&#147;Bagley&#148;) was sound, and that Matisse
and Bagley had breached fiduciary duties owed to ART. Since the Appellate
Court reversed the District Court&#146;s judgment and reinstated portions of the
jury&#146;s verdict, the Appellate Court remanded the case to the District Court to
vacate any award of attorneys&#146; fees to Matisse and to determine ART&#146;s
entitlement to attorneys&#146; fees. The Appellate Court also charged costs to be
born by Matisse.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November&nbsp;2002, ART had posted a $6,000,000 supersedeas bond, but in
July&nbsp;2003, ART obtained a letter of credit which was substituted for the bond.
The $6,000,000 cash had been returned to ART. ARI had not previously
recognized any expense nor established any reserve for the attorneys&#146; fees
portion of the now overturned judgment.
</FONT>
<P align="center"><FONT size="2">-2-
</FONT>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
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<DIV align="left"><A name="a001"></A></DIV>
<P align="center"><FONT size="2"><B>SIGNATURES</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf of the
undersigned hereunto duly authorized.
</FONT>
<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">

<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">Date: December&nbsp;31, 2003</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" valign="top" align="left"><FONT size="2">AMERICAN REALTY INVESTORS, INC</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
By:
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">/s/ Robert A. Waldman</FONT></TD>
</TR>
<TR>
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">Robert A. Waldman, Senior Vice</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">President, General Counsel and</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">Secretary</FONT></TD>
</TR>
</TABLE>
</DIV>



<P align="center"><FONT size="2">-3-
</FONT>


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