NEW YORK, NY / ACCESSWIRE / September 18, 2018 / Pomerantz LLP is investigating claims on behalf of investors of Diamond Resorts International, Inc. ("Diamond" or the "Company") (NYSE: DRII) who held, sold or tendered Diamond common stock, or derivative securities convertible into, exercisable for, or exchangeable against Diamond common stock, between July 14, 2016 and September 1, 2016, both dates inclusive. Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 9980.
The investigation concerns whether Diamond and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On June 23, 2016, Apollo Global Management LLC ("Apollo") submitted a bid to purchase Diamond for $30.25 per share through a subsidiary. On June 26, 2016, Diamond's Board of Directors (the "Board") voted in favor of the sale of Diamond to Apollo. Stephen J. Cloobeck, Diamond's founder, chairman, and largest stockholder abstained from the vote. As recorded in the minutes of the Company's Board meetings, Cloobeck informed the Board that he was disappointed with the failure of Diamond's management to run the Company in a manner that would have secured a higher market and deal price for the shares of Diamond's common stock, and expressed his view that it was not the right time to sell Diamond. On June 29, 2016, Diamond announced its entry into a merger agreement with Apollo. On July 14, 2016, Diamond filed a Recommendation Statement with the U.S. Securities and Exchange Commission, recommending that Diamond shareholders tender their shares pursuant to Apollo's tender offer. The Recommendation Statement omitted to state that Cloobeck had abstained from voting on the sale of Diamond for reasons that contradicted the Board's recommendation to Diamond's shareholders.
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SOURCE: Pomerantz LLP