According to the Complaint, Diamond Resorts International, Inc. ("Diamond" or the "Company") is a global leader in the hospitality and vacation ownership industry, with a worldwide resort network of 420 vacation destinations located in 35 countries throughout the world. The Company owns a network of international vacation destinations and sells vacation ownership "points," which entitle the owner to reserve rooms in one of Diamond's resort or hotel properties.
This is a securities class action on behalf of shareholders who held, sold or tendered Diamond common stock, or derivative securities convertible into, exercisable for, or exchangeable against Diamond common stock, from the period beginning on July 14, 2016, through September 1, 2016, against Diamond and certain officers and directors of Diamond (the "Individual Defendants" or "Board" and collectively with Diamond, the "Defendants"), for their violations of Sections 14(e) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"), 78n(e), 78t(a).
The Complaint alleges that on July 14, 2016, Defendants caused the materially incomplete and misleading Recommendation Statement to be filed with the SEC. While the Recommendation Statement provided a detailed recitation of the process the Board undertook prior to voting to enter into the Merger Agreement with Apollo Global Management LLC ("Apollo"), it omitted certain pieces of critical and material information which render portions of the Recommendation Statement materially incomplete and misleading.
On September 26, 2018, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on December 17. Defendants filed a Motion to Dismiss the amended Complaint on May 9, 2019.
On October 4, the Court issued an Order staying the case pending the outcome of settlement discussions of a related case in the Delaware Court of Chancery. On February 10, 2020, the Court issued an Order denying Defendants' Motion to Dismiss. On July 9, the parties stipulated that the Settlement had been approved in the Delaware Court of Chancery and voluntarily dismissed the remaining claims.