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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001181431-05-029470.txt : 20050520
<SEC-HEADER>0001181431-05-029470.hdr.sgml : 20050520
<ACCEPTANCE-DATETIME>20050520121136
ACCESSION NUMBER:		0001181431-05-029470
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050520
ITEM INFORMATION:		Other Events
FILED AS OF DATE:		20050520
DATE AS OF CHANGE:		20050520

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:		05847133

	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>rrd79774.htm
<DESCRIPTION>AMERICAN REALTY INVESTORS INC - OTHER EVENTS
<TEXT>



<HTML>


<HEAD>








<META NAME="_AdHocReviewCycleID" CONTENT="1184912688">


<META NAME="_EmailSubject" CONTENT="Forms 8-K for ARL and TCI">


<META NAME="_AuthorEmail" CONTENT="aglendinning@pmklaw.com">


<META NAME="_AuthorEmailDisplayName" CONTENT="Glendinning, Ashley">


</HEAD>


<BODY>





<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&#9;<B><FONT SIZE=4>SECURITIES AND EXCHANGE COMMISSION</P>


<P ALIGN="JUSTIFY">&#9;Washington, D.C. 20549</P>


</B></FONT><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&#9;<B><FONT SIZE=5>FORM 8-K</P>


</B></FONT><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&#9;<B><FONT SIZE=4>CURRENT REPORT</P>


</B></FONT><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&#9;<B>Pursuant to Section 13 or 15(d) of the Securities Exchange Act</P>


</B><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&#9;Date of Report: May 16, 2005</P>


<P ALIGN="JUSTIFY">&#9;<FONT SIZE=2>(Date of Earliest Event Reported)</P>


</FONT><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY">&#9;<B><FONT SIZE=5>AMERICAN REALTY INVESTORS, INC.</P>


</B></FONT><P ALIGN="JUSTIFY">&#9;<FONT SIZE=2>(Exact Name of Registrant as Specified in its Charter)</P>


</FONT><P ALIGN="JUSTIFY"></P>


<TABLE BORDER CELLSPACING=1 BORDERCOLOR="#ffffff" CELLPADDING=8 WIDTH=624>


<TR><TD WIDTH="35%" VALIGN="TOP">


<P>&nbsp;</P>


<P>&#9;<B>Nevada</B></TD>


<TD WIDTH="32%" VALIGN="TOP">





<P>&#9;<B>001-15663</B></TD>


<TD WIDTH="33%" VALIGN="TOP">





<P>&#9;<B>75-2847135</B></TD>


</TR>


<TR><TD WIDTH="35%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="CENTER">(State or other </P>


<P ALIGN="CENTER">jurisdiction of incorporation)</FONT></TD>


<TD WIDTH="32%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="CENTER">(Commission</P>


<P ALIGN="CENTER">File No.)</FONT></TD>


<TD WIDTH="33%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="CENTER">(I.R.S. Employer</P>


<P ALIGN="CENTER">Identification No.)</FONT></TD>


</TR>


</TABLE>





<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY">&#9;<B>1800 Valley View Lane, Suite 300</P>


<P ALIGN="JUSTIFY">&#9;Dallas, Texas 75234</P>


</B><P ALIGN="JUSTIFY">&#9;<FONT SIZE=2>(Address of principal executive offices)</P>


</FONT><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY">&#9;<B>469-522-4200</P>


</B><P ALIGN="JUSTIFY">&#9;<FONT SIZE=2>(Registrant<FONT FACE="WP TypographicSymbols">&#61;</FONT>


s telephone number, including area code)</P>


</FONT><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<FONT SIZE=2><P ALIGN="JUSTIFY">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:</P>


<P ALIGN="JUSTIFY"></P><DIR>


<DIR>


<DIR>





</FONT><P ALIGN="JUSTIFY"><FONT FACE="WP TypographicSymbols">&#71;</FONT>


<FONT SIZE=2>&#9;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>


</FONT><P ALIGN="JUSTIFY"><FONT FACE="WP TypographicSymbols">&#71;</FONT>


<FONT SIZE=2>&#9;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>


</FONT><P ALIGN="JUSTIFY"><FONT FACE="WP TypographicSymbols">&#71;</FONT>


<FONT SIZE=2>&#9;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>


</FONT><P ALIGN="JUSTIFY"><FONT FACE="WP TypographicSymbols">&#71;</FONT>


<FONT SIZE=2>&#9;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>


</FONT><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY">&nbsp;</P></DIR>


</DIR>


</DIR>





<P ALIGN="JUSTIFY"></P>


<B><P ALIGN="JUSTIFY">Section 8 <FONT FACE="WP TypographicSymbols">&#66;</FONT>


 Other Events</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Item 8.01.  Other Events</P>


<P ALIGN="JUSTIFY"></P>


</B><I><P ALIGN="JUSTIFY">Sunset Management LLC Litigation</I>.  On October 5, 2004, Sunset Management LLC (<FONT FACE="WP TypographicSymbols">&#65;</FONT>


Sunset<FONT FACE="WP TypographicSymbols">&#64;</FONT>


) filed a complaint as a purported stockholders<FONT FACE="WP TypographicSymbols">&#61;</FONT>


 derivative action on behalf of Transcontinental Realty Investors, Inc. (<FONT FACE="WP TypographicSymbols">&#65;</FONT>


TCI<FONT FACE="WP TypographicSymbols">&#64;</FONT>


) in the United States District Court for the Northern District of Texas, Dallas Division, against American Realty Investors, Inc. (<FONT FACE="WP TypographicSymbols">&#65;</FONT>


ARL<FONT FACE="WP TypographicSymbols">&#64;</FONT>


 or the <FONT FACE="WP TypographicSymbols">&#65;</FONT>


Company<FONT FACE="WP TypographicSymbols">&#64;</FONT>


), and others, including TCI<FONT FACE="WP TypographicSymbols">&#61;</FONT>


s and the Company<FONT FACE="WP TypographicSymbols">&#61;</FONT>


s current directors and officers and other individuals.  Sunset<FONT FACE="WP TypographicSymbols">&#61;</FONT>


s complaint filed as Case No. 304CV02162-B raised a number of allegations previously raised by Sunset in four other cases which, as rulings have occurred, have resulted in a denial of Sunset<FONT FACE="WP TypographicSymbols">&#61;</FONT>


s requested relief.  The collective Defendants, on November 8, 2004, filed a Motion to Dismiss the case pursuant to Rules 12 and 23.1 of the Federal Rules of Civil Procedure on the basis that Sunset<FONT FACE="WP TypographicSymbols">&#61;</FONT>


s allegations were insufficient to evade the stringent demand requirements under the futility exceptions for stockholder derivative actions, and that Sunset could not fairly and adequately represent the interest of other stockholders.</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">On May 16, 2005, the United States District Court for the Northern District of Texas, Dallas Division, entered its Memorandum Opinion and Order and Judgment dismissing the purported stockholders<FONT FACE="WP TypographicSymbols">&#61;</FONT>


 derivative action.  The Court<FONT FACE="WP TypographicSymbols">&#61;</FONT>


s Judgment granted the Defendants<FONT FACE="WP TypographicSymbols">&#61;</FONT>


 Motion to Dismiss and ordered that Plaintiff Sunset take nothing by its suit against American Realty Investors, Inc. and other entities and the officers and directors of TCI and the Company.  The Court<FONT FACE="WP TypographicSymbols">&#61;</FONT>


s Order was entered granting the Motion to Dismiss filed by American Realty Investors, Inc. and others and advised that Sunset had not met the fair and adequate representation test as a proper shareholder representative because Sunset is pursuing separate litigation claims against the Company and the various other defendants in different lawsuits, certain of which are still pending.  The Court<FONT FACE="WP TypographicSymbols">&#61;</FONT>


s Order advises that <FONT FACE="WP TypographicSymbols">&#65;</FONT>


Sunset is clearly trying to use this lawsuit to obtain leverage in its other pending lawsuits against the Defendants.<FONT FACE="WP TypographicSymbols">&#64;</FONT>


</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&#9;<B>SIGNATURES</P>


</B><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly-caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly-authorized.</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Dated: May 19, 2005&#9;&#9;&#9;AMERICAN REALTY INVESTORS, INC.</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY">By: <U>  /s/  Allen M. Wilson, Jr.&#9;</P>


</U><P ALIGN="JUSTIFY">Allen M. Wilson, Jr., Controller </P>


<P ALIGN="JUSTIFY">(Acting Principal Financial and Accounting Officer)</P>


<FONT SIZE=4><P ALIGN="JUSTIFY">&#9;METZGER &amp; McDONALD PLLC</P>


<P ALIGN="JUSTIFY">&#9;</FONT><FONT SIZE=2>(formerly Prager, Metzger &amp; Kroemer PLLC)</P>


<P ALIGN="JUSTIFY">&#9;</FONT><FONT SIZE=1>A PROFESSIONAL LIMITED LIABILITY COMPANY</P>


<P ALIGN="JUSTIFY">&#9;ATTORNEYS, MEDIATORS &amp; COUNSELORS</P>


<P ALIGN="JUSTIFY"></P>


</FONT><P ALIGN="JUSTIFY"><FONT SIZE=1>Steven C. Metzger&#9;</FONT><FONT SIZE=1>2626 Cole Avenue, Suite 900</P>


</FONT><P ALIGN="JUSTIFY"><FONT SIZE=1>Direct Dial 214-740-5030&#9;</FONT><FONT SIZE=1>Dallas, Texas 75204-1083&#9;</FONT><FONT SIZE=1>Facsimile 214-523-3838</P>


</FONT><P ALIGN="JUSTIFY"><FONT SIZE=1>smetzger@pmklaw.com&#9;</FONT><FONT SIZE=1>214-969-7600&#9;</FONT><FONT SIZE=1>214-969-7635</P>


</FONT><P ALIGN="JUSTIFY"><FONT SIZE=1>&#9;www.pmklaw.com</P>


</FONT><FONT FACE="Courier"><P ALIGN="JUSTIFY"></P><DIR>


<DIR>





<P ALIGN="JUSTIFY">&#9;</FONT>May 19, 2005</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<B><I><P ALIGN="JUSTIFY">Via EDGAR</P>


</B></I><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Securities and Exchange Commission</P>


<P ALIGN="JUSTIFY">450 Fifth Street, N.W.</P>


<P ALIGN="JUSTIFY">Judiciary Plaza</P>


<P ALIGN="JUSTIFY">Washington, D.C. 20549</P>


<P ALIGN="JUSTIFY"></P><DIR>


<DIR>


<DIR>


<DIR>





<P ALIGN="JUSTIFY">RE:&#9;American Realty Investors, Inc., Commission File No. 001-15663</P>


<P ALIGN="JUSTIFY"></P></DIR>


</DIR>


</DIR>


</DIR>





<P ALIGN="JUSTIFY">Gentlemen:</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">On behalf of American Realty Investors, Inc., we are delivering under the EDGAR system for filing an original Form 8-K Current Report for event occurring on May 16, 2005.</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">By copy of this letter, we are delivering a copy of the enclosure to the principal exchange on which the securities of American Realty Investors, Inc. are listed.  If you would like to discuss any matter concerning this filing, please do not hesitate to contact the undersigned at 214-740-5030 direct.</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Very truly yours,</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY">/s/ Steven C. Metzger</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Steven C. Metzger</P>


<P ALIGN="JUSTIFY"></P>


<FONT SIZE=2><P ALIGN="JUSTIFY">SCM:ag</P>


<P ALIGN="JUSTIFY">Enclosures</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">cc:&#9;American Realty Investors, Inc.</P>


<P ALIGN="JUSTIFY">1800 Valley View Lane, Suite 300</P>


<P ALIGN="JUSTIFY">Dallas, Texas 75234</P>


<P ALIGN="JUSTIFY">ATTN:&#9;Louis J. Corna, Executive Vice President,</P>


<P ALIGN="JUSTIFY">General and Tax Counsel and Secretary</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">New York Stock Exchange, Inc.</P>


<P ALIGN="JUSTIFY">20 Broad Street</P>


<P ALIGN="JUSTIFY">New York, New York 10005</P>


</FONT></DIR>


</DIR>


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</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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