According to the docket posted on the site, on August 30, 1999, U.S. District Judge William H. Walls issued a Letter Order granting the motion to dismiss and remanding the action to the Superior Court of New Jersey, Bergen County. The case was closed in federal court on September 1, 1999.
The complaint, brought on behalf of the public minority shareholders, charges that the defendants manipulated the stock price of Zenith and engaged in a common plan and scheme to defraud Zenith public minority shareholders of their stake in the Company by freezing them out for no payment whatsoever in an announced "prepackaged" bankruptcy plan and thereby gain total control of Zenith, by violating the federal securities laws and state and common law, by amongst other things, misrepresenting and/or omitting material information concerning their intentions to support Zenith financially and maintain Zenith as a viable and
Furthermore, the complaint charges that the defendants, contrary to the Company's April 1, 1998 press release and representations, prior to announcing that they were going to put Zenith in bankruptcy and thereby obtaining the rest of Zenith's shares with no payment to the public minority shareholders, did not: undertake an adequate evaluation of the Company's worth as a potential merger/acquisition candidate; take adequate steps to enhance the Company's value and attractiveness as a merger/acquisition candidate; effectively expose the Company to the marketplace in an effort to create an active auction for the Company; act independently, so that the interests of the public shareholders will be protected; or adequately ensure that no conflicts of interest existed or, if such conflicts existed, to insure that all conflicts would be resolved in favor of the interests of the public shareholders.
The complaint was originally filed in the Superior Court of New Jersey, Bergen County.