Pursuant to the merger agreement, shareholders of record may be entitled to obtain the $1.50 per share special dividend. To do so, you need to be a shareholder of record by the required deadline. Here is contact info to get your name added: 1-877-772-3975
(CN) - Ameristar Casinos shareholders are challenging a takeover by Pinnacle 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 Ameristar and its stockholders in furtherance of their plan to protect and advance their own interests, at the expense of and to the detriment of Ameristar 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 Ameristar directors and executive "have clear and material conflicts of interest and are acting to better their own interests and the interests of Ameristar's other senior managers and directors at the expense of the company and its public shareholders."
"Defendants have initiated a process to sell Ameristarthat undervalues the company and vests them with benefits that are not shared equally by 'Ameristars public shareholders - a clear effort to take advantage of the temporary depression in 'Ameristars stock price," the complaint states. "In addition, by agreeing to the proposed transaction. Defendants have capped the price of Ameristarat 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