On or around 12/14/2011 (Notice of voluntarily dismissal)
Filing Date: November 23, 2011
According to a complaint filed on November 25, 2011, the Plaintiff alleges violations of the federal securities laws in connection with a proposed merger.
On October 11, 2011, the Company and Bidder announced a proposed merger whereby the Bidder would acquire the Company for $22.00 per share without interest. The plaintiffs claim the Proposed Transaction is unfair because it does not adequately value the Company's future growth prospects.
The plaintiffs also claim that the Defendants breached their fiduciary duties by agreeing to lock up the Proposed Acquisition with deal protection devices that preclude other bidders from making a successful competing offer for the Company. Specifically, Defendants agreed to: (i) a no-solicitation provision that prevents other buyers from having access to the Company's confidential information which information is necessary to formulate a bid, except under extremely limited circumstances; (ii) a matching rights provision that allows the Bidder 4 business days to match any competing proposal in the event one is made; and (iii) a provision that requires the Company to pay Bidder and Canada Pension Plan a termination fee of $47.25 million upon termination of the Merger Agreement under specified circumstances.
Lastly, the complaint charges that Defendants have also breached their duty of candor in recommending the transaction to the Company's shareholders. On October 27, 2010, the Company filed a Schedule 14A Preliminary Proxy Statement with the SEC in connection with the Proposed Acquisition pursuant to which, inter alia, 99¢ Only Board Directors recommended that the Company stockholders vote "FOR" the approval and adoption of the Merger Agreement and in favor of the Proposed Acquisition.
On December 14, 2011, pursuant to Federal Rule of Civil Procedure 41(a), Plaintiff voluntarily dismissed the action without prejudice against the Defendants.
Company & Securities Information
Defendant: 99 Cents Only Stores
Industry: Retail (Specialty)
Headquarters: United States
Ticker Symbol: NDN
Company Market: New York SE
Market Status: Public (Listed)
About the Company & Securities Data
"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.
In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
First Identified Complaint
Allen I. Mitchell, et al. v. David Gold, et al.
COURT: C.D. California
DOCKET #: 11-CV-09783
DATE FILED: 11/23/2011
CLASS PERIOD START: 10/27/2010
CLASS PERIOD END: 11/23/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Bull & Lifshitz 18 East 41st St., Bull & Lifshitz, NY 10017 212.213.6222 212.213.9405 ·
Mauriello Law Firm, APC 1181 Puerta Del Sol, Suite 120, Mauriello Law Firm, APC, CA 92673 (949) 542-3555 (949) 606-9690 ·
First Identified Complaint (FIC) Filings:
Class Action Complaint for Violations of the Federal Securities Law and State Law Claims
U.S. District Court Civil Docket
Notice of Voluntary Dismissal Without Prejudice
U.S. District Court Civil Docket
—Reference Complaint Complaint Related Data is not available
Related District Court Filings
—Related District Court Filings Data is not available