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Investments

TRW Automotive acquisition takeover shareholder lawsuit

TRW Automotive Holdings Corp. (TRW) today announced it has entered into a definitive agreement with ZF Friedrichshafen AG under which ZF will acquire all outstanding shares of TRW for US$105.60 per share.  The proposed TRW merger is an all-cash transaction that values TRW at approximately $13.5 billion.

Marrone hit with shareholder lawsuit re revenue recognition

Marrone’s stock took a large hit when the company disclosed that it had to restate certain finical statements due to revenue recognition errors.  This class action lawsuit then addresses whether senior executives knew that the company had financial control problems prior to this disclosure.

Flagstar hit with shareholder lawsuit re CSFB

Flagstar operates a large mortgage wholesale business and a large mortgage servicing business (especially for a relatively smallish depository bank).  In late August, Flagstar announced that it entered into settlement decisions with the federal government relating to its mortgage servicing and default business.  This securities class action then asks the questions why didn’t the bank disclose the ongoing investigation earlier and what was the state of the internal controls at Flagstar.

NetSol hiw with shareholder lawsuit

This securities fraud case asks the question whether senior executives at NetSol systematically overstated the company’s business prospects to investors.

 

Ocwen Financial hit with securities fraud lawsuit

Mortgage originators and servicers have come under fire for charging home owners exorbitant insurance premiums when the servicer force places insurance on home owners, primarily because the mortgage servicer charges a huge insurance premium and then receives a kick back from the insurance company.  Ocwen senior executives apparently took this one step further:  They allegedly directly at least $60 million per year in these so-called earned insurance fees and rather than place them on Ocwen’s balance sheet, the senior executives diverted those fees to Altisource - a company owned and controlled by Ocwen’s Chairman of the Board.  This securities fraud class action then addresses the question of whether these related transactions constitute securities fraud against Ocwen shareholders.

Yelp shareholder sues re securities fraud

The cornerstone of Yelp’s business is the even-handed aggregation of properly screened, truly authentic, first-hand reviews of local businesses.  What if the screening process is less than optimal allowing unacceptable negative reviews?  What if Yelp conveniently offers local businesses the chance to pay to place an ad where those negative reviews would otherwise be located?   What if investors were mislead about all this?  These are some of the questions that this securities fraud class action will address.

Bally Technologies acquisition under review

Scientific Games Corporation and Bally Technologies, Inc. (NYSE: BYI) ("Bally") today announced that the companies have entered into a definitive merger agreement whereby Scientific Games has agreed to acquire all of the outstanding Bally common stock for $83.30 in cash per share. The aggregate transaction value is approximately $5.1 billion, including the refinancing of approximately $1.8 billion of existing Bally net debt.

Pike merger under review for fairness

The Pike Corporation (NYSE:PIKE) board of directors has agreed to sell the company to the the current CEO and an investment firm.  If the deal stands, each Pike shareholder would receive $12.00 in cash for each share of stock they own.  The transaction as structured between Court Square Capital Partners and Pike Corporation represents a total transaction value of approximately $595 million, consisting of an equity value of approximately $395 million and net debt of approximately $200 million.

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