Case Page

 

Case Status:    ONGOING    
On or around 05/03/2018 (Ongoing date of last review)

Filing Date: May 02, 2018

According to the Complaint, The Finish Line, Inc. ("Finish Line") operates as a retailer of athletic shoes, apparel, and accessories for men, women, and kids in the United States.

On March 26, 2018, Finish Line issued a press release announcing the Proposed Transaction, in which JD Sports Fashion PLC ("JD Sports") will acquire each outstanding share of Finish Line common stock for $13.50 per share, with a total valuation of approximately $558 million.

The Complaint alleges that the Proposed Transaction is unfair and undervalued for a number of reasons. Significantly, as noted in the Preliminary Proxy, the sales process was hastily conducted without a proper market check, in order to avoid an escalation of a conflict with an activist investor. This overly accelerated process resulted in a process where only one other party was ever considered as a potential strategic partner, namely, JD Sports. Next, it appears as though the Board has entered into the Proposed Transaction to procure for themselves and senior management of the Company significant and immediate benefits while the Company’s stockholders are cashed out at an unfair price. Defendants breached their fiduciary duties to the Company’s stockholders by agreeing to the Proposed Transaction which undervalues Finish Line and is the result of a flawed sales process.

Finally, the Complaint alleges that in violation of sections 14(a) and 20(a) of the Securities and Exchange Act of 1934 (the “Exchange Act”) and their fiduciary duties, Defendants caused to be filed the materially deficient Preliminary Proxy on April 24, 2018 with the SEC in an effort to solicit stockholders to vote their Finish Line shares in favor of the Proposed Transaction. The Preliminary Proxy is materially deficient and deprives Finish Line stockholders of the information they need to make an intelligent, informed and rational decision of whether to vote their shares in favor of the Proposed Transaction.

COMPANY INFORMATION:

Sector: Consumer Cyclical
Industry: Footwear
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: FINL
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: S.D. Indiana
DOCKET #: 18-CV-01342
JUDGE: Hon. Tanya Walton Pratt
DATE FILED: 05/02/2018
CLASS PERIOD START: 03/26/2018
CLASS PERIOD END: 05/02/2018
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Brodsky & Smith, LLC
    Two Bala Plaza, Suite 602, Brodsky & Smith, LLC, PA 19004
    610.667.6200 610.667.6200 ·
  2. Riley Williams & Piatt, LLC
    301 Massachusetts Avenue , Riley Williams & Piatt, LLC, IN 46204
    317-633-5270 317-426-3348 ·
No Document Title Filing Date
—Reference Complaint Complaint Related Data is not available
—Related District Court Filings Data is not available