According to the Complaint, this is a shareholder class action on behalf of the holders of the common stock of
Giant Interactive Group Inc. seeking, among other things, to enjoin the shareholder vote relating to the acquisition of the publicly owned shares of Giant common stock by Giant Investment Limited and its wholly owned subsidiary Giant Merger Limited.
The Complaint alleges that the Board has breached its duties to Giant's public ADS holders by not performing a detailed, full, and transparent process and by omitting material information from the solicitation documents that renders other information contained in the Preliminary Proxy materially misleading in violation of Section 14 of the Exchange Act. Moreover, the Preliminary Proxy is in violation of Section 13e-3 because it omitted information concerning the fairness of the merger transaction and the fairness opinions of the respective financial advisors. Specifically, the Preliminary Proxy contains a number of material omissions concerning, among other things:
(a) the background of the transaction; (b) material information regarding key management projections; (c) the financial analysis of Giant's financial advisor, (d) the financial analyses of Giant's additional financial advisors, and (e) potential conflicts of interest of the respective financial advisors.
On May 20, 2014, the Court issued an Order of consolidation, appointed lead plaintiff and the law firms of Levi & Korsinsky, LLP, Brodsky & Smith, LLC, and Milberg LLP were appointed plaintiffs' Interim Co-Lead Counsel. All papers filed in connection with the Consolidated Action shall be filed under In re Giant Interactive Shareholder Litigation, No. 14-CV-2177. Lead Plaintiffs filed a consolidated complaint on June 19.
On August 8, 2014, the Court issued an Order granting the motion to voluntarily dismiss this case.