According to the law firm press release, the Complaint filed in this class action alleges throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the alleged breaches of fiduciary duty by Defendant, and alleged related party transactions that served to benefit Defendant to the detriment of other Company shareholders. Specifically, the complaint alleges that Defendants failed to disclose: (1) that the Patriot National special committee was beholden to Defendant; (2) that, as such, the special committee was operating for the benefit of Defendant, and not the Company or its shareholders; (3) that the special committee did not independently assess the merits of the Ebix transaction; (4) that the special committee was not exploring strategic alternatives in order to maximize shareholder value; and (5) that, as a result of the foregoing, Defendants’ statements about Patriot National’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
An Order of Consolidation was issued on October 12, 2017.
On February 2, 2018, the Court issued an order staying all claims against the Issuer Defendant due to Defendant's voluntary filing of a petition in the United States Bankruptcy Court for the District of Delaware. On February 27, the Court issued an Order appointing Co-lead Plaintiffs and Counsel. On October 18, Co-lead Plaintiffs filed a consolidated amended Complaint. On December 20, the parties entered into a Stipulation and Agreement of Settlement.