NEWSPAPER ARTICLE - SHAREHOLDER LAWSUIT FILED (DAYS LEFT TO JOIN)
Class Challenges Acquisition of FirstCity Financial
By STEVE TWEEDY
(CN) - FirstCity Financial shareholders are challenging a takeover of the company in a shareholder class action lawsuit.
According to shareholder Chen Yang, who owns over 10,000 shares, the deal undercuts the company's true value. "Each of the individual defendants breached their fiduciary duties owed to FirstCity and its stockholders in furtherance of their plan to protect and advance their own interests, at the expense of and to the detriment of FirstCity and its public stockholders," the complaint states. "Among other things, the individual defendants have agreed to sell the company at an unfairly low price."
Yang said FirstCity directors and executive "have clear and material conflicts of interest and are acting to better their own interests and the interests of FirstCity's other senior managers and directors at the expense of the company and its public shareholders."
"Defendants have initiated a process to sell FirstCity that undervalues the company and vests them with benefits that are not shared equally by 'FirstCity's public shareholders - a clear effort to take advantage of the temporary depression in 'FirstCity's stock price," the complaint states. "In addition, by agreeing to the proposed transaction. Defendants have capped the price of FirstCity at a price that does not adequately reflect the company's true value."
The prominant law firm Tripp Levy PLLC represents the class. Tripp Levy PLLC 877-772-3975