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Case Status:    DISMISSED    
On or around 12/22/2017 (Notice of voluntarily dismissal)

Filing Date: December 04, 2017

According to the Complaint, NewStar is an internally-managed, commercial finance company with $7.3 billion of assets managed across two complementary business lines: middle market direct lending and asset management.

The Company’s direct lending activities are focused on meeting the complex financing needs of companies and private investors in the middle markets through specialized lending groups that offer a range of flexible debt financing options.

Credit investments are originated directly through teams of experienced, senior bankers and marketing officers organized around key industry and market segments.

Through its asset management platforms, NewStar offers a range of investment products employing credit-oriented strategies focused on middle market loans and liquid, tradeable credit. The Company manages approximately $2.0 billion of assets in a series of private credit funds that co-invest in middle market loans originated through its established leveraged finance lending platform.

Through its wholly-owned subsidiary, the Company also has more than $2 billion of assets managed across a series of CLOs that invest primarily in broadly syndicated, non-investment grade loans, as well as other sponsored funds and managed accounts that invest across various asset classes, including non-investment grade loans and bonds.

This action stems from a proposed transaction announced on October 17, 2017 (the “Proposed Transaction”), pursuant to which NewStar Financial, Inc. (“NewStar” or the “Company”) will be acquired by affiliates of First Eagle Investment Management, LLC. On October 16, 2017, NewStar’s Board of Directors (the “Board” or “Individual Defendants”) caused the Company to enter into an agreement and plan of merger (the “Merger Agreement”) with First Eagle Holdings, Inc. (“Parent”), FE Holdco, LLC (“FE Holdco”), and FE Merger Sub, Inc. (“Merger Sub,” and together with First Eagle, FE Holdco, and First Eagle Investment Management, LLC, “First Eagle”). Under the terms of the Merger Agreement, shareholders of NewStar will receive $11.44 per share in cash and one contractual contingent value right (“CVR”).

On November 30, 2017, defendants filed a proxy statement (the “Proxy Statement”) with the United States Securities and Exchange Commission (“SEC”) in connection with the Proposed Transaction.

The Complaint alleges that the Proxy Statement, which scheduled a stockholder vote on the Proposed Transaction for December 21, 2017, omits material information with respect to the Proposed Transaction, which renders the Proxy Statement false and misleading.

This case was voluntarily dismissed on December 22, 2017.

COMPANY INFORMATION:

Sector: Financial
Industry: Misc. Financial Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: NEWS
Company Market: NASDAQ
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.
COURT: D. Massachusetts
DOCKET #: 17-CV-12379
JUDGE: Hon. Richard G. Stearns
DATE FILED: 12/04/2017
CLASS PERIOD START: 10/17/2017
CLASS PERIOD END: 12/04/2017
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Matorin Law Office, LLC
    18 Grove Street, Suite 5, Matorin Law Office, LLC, MA 02482
    (781) 453-0100 ·
  2. Rigrodsky & Long, P.A.
    919 N. Market Street, Suite 980, Rigrodsky & Long, P.A., DE 19803
    302.295.5310 302.295.5310 · info@rigrodskylong.com
  3. RM Law, P.C.
    1055 Westlakes Drive, Suite 3112, RM Law, P.C., PA 19312
    (484) 324-6800 ·
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