8-K 1 la664301.txt 5/24/01 ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): May 22, 2001 Prometheus Income Partners, a California Limited Partnership (Exact name of registrant as specified in its charter) California 000-16950 77-0082138 (State or other jurisdiction of (Commission (IRS Employer incorporation or organization) File Number) Identification No.) 350 Bridge Parkway, Redwood, California 94065-1517 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (650) 596-5300 Not Applicable ------------------------------------------------------------------ (Former name or former address, if changed since last report) ================================================================================ Item 5. Other Events. On May 22, 2001, Prometheus Income Partners (the "Company") reached a settlement with the remaining defendants in its litigation commenced in September 1996 relating to the Company's Timberleaf apartment property against the siding manufacturer, the general contractor, the subcontractors and the architect regarding problems stemming from the hardboard siding and other construction defects. Under the terms of the Timberleaf settlement, the remaining defendants have agreed to pay an aggregate of $4.86 million to the Company for the full and final settlement of the claims against them. Of this amount, the Company will receive a net amount of approximately $3.3 million, after payment of attorneys' fees, costs and a litigation management fee of 3% of the gross settlement to an affiliate of the Company's general partner. This settlement is subject to the approval of the court. The Company intends to continue to pursue vigorously its claims against the remaining defendants in the litigation regarding the Company's Alderwood apartment property. SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PROMETHEUS INCOME PARTNERS, a California Limited Partnership By PROMETHEUS DEVELOPMENT CO., INC., a California corporation, Its General Partner Date: May 24, 2001 By: /s/ John J. Murphy --------------------------------- John J. Murphy, Vice President