Lawsuit for Investors in Patriot National Inc. (NYSE:PN) Shares Announced by Shareholders Foundation
SAN DIEGO, CA / ACCESSWIRE / May 23, 2017 / The Shareholders Foundation, Inc. announces that a lawsuit was filed for certain investors who purchased NYSE: PN shares against Patriot National Inc. over alleged Securities Laws Violations.
The plaintiff seeks to recover losses for certain investors who purchased NYSE: PN shares.
Investors, who purchased shares of Patriot National Inc. (PN), have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
On August 1, 2016, Patriot National Inc. announced that a Special Committee of its Board of Directors had agreed to consider an enhanced offer for a potential acquisition by Ebix, Inc. and on November 8, 2016, Patriot National Inc. announced that it had rejected the $475 million offer from Ebix, Inc. because Patriot National Inc. claimed it was "not the best alternative to maximize value for Patriot National's shareholders."
In December 2016 it was reported that a Patriot National Inc. shareholder sued Patriot National Inc. in Delaware based on allegations that the CEO of Patriot National Inc. Mr. Steve Mariano had been using the company "as his personal piggy bank" and that Mariano made a series of decisions that were detrimental to the Company's business, but that allowed him to retain control of the Company.
On March 3, 2017, Patriot National Inc. announced that it had entered into an agreement with Guarantee Insurance Group and Mariano, regarding the service agreements between Patriot National Inc. and Guarantee Insurance Group's wholly-owned subsidiary Guarantee Insurance Company.
Mr. Mariano is both the Chairman, CEO, and majority owner of Patriot National Inc, as well as the majority owner of Guarantee Insurance Company. Patriot National Inc. further disclosed that Guarantee Insurance Company is the Company's principal customer, with contracts and relationships from Guarantee Insurance Company generating $107.8 million, or 59% of the Company's Total Fee Income and Fee Income from Related Party for the nine-months ended September 30, 2016.
On March 14, 2017, a lawsuit was filed against Patriot National Inc. over alleged securities laws violations. The plaintiff claims that the defendants failed to disclose that the Patriot National Inc. special committee was beholden to Mariano, that, as such, the special committee was operating for the benefit of Mariano, and not the Company or its shareholders, that the special committee did not independently assess the merits of the Ebix transaction, that the special committee was not exploring strategic alternatives in order to maximize shareholder value, and that, as a result of the foregoing, defendants' statements about Patriot National's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
Those who purchased Patriot National Inc. (PN) shares should contact the Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
CONTACT:
Shareholders Foundation, Inc.
Michael Daniels
+1 (858) 779-1554
mail@shareholdersfoundation.com
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
SOURCE: Shareholders Foundation, Inc.
