A Class-action lawsuit aims to bring the defendants of the Harris-Teeter merger to justice. This lawsuit alleges breaches of fiduciary duty by the company’s board of directors, failure to disclose material information, and failure to consider the value of the company. It is not clear who is eligible to bring the lawsuit, but it is an excellent way to learn about the current situation affecting the grocery chain.
The class-action lawsuit seeks similar relief
A newly filed class-action lawsuit is pursuing similar relief against the company that acquired Harris Teeter. In the lawsuit, plaintiff Wendy WHITT, a stock clerk at Harris Teeter, is seeking a class action certification under the Fair Labor Standards Act (FLSA) and other remedies related to the merger. The plaintiff’s attorney, Andrew Livengood, testified that he and his colleagues were denied light-duty work as a result of the merger, but he was never told about the light-duty jobs.
Alleges breach of fiduciary duties
Several class action suits and state lawsuits have been filed against the Harris Teeter merger. Allegations of fraud and violations of federal securities laws are the central themes of the cases. The merger is said to have created a company with less transparency than its competitors. But why did the merger fail? Here are some facts you may find interesting. This lawsuit alleges a breach of fiduciary duties by Harris Teeter executives.
The plaintiffs’ complaint alleges that the defendants breached their fiduciary duties by not allowing the merger to proceed despite shareholder objections. This allegation relates to the suppression of target appraisals, which the plaintiffs argue could have raised the stock value. If plaintiffs can establish that the target appraisals were suppressed, the court will likely test the existence of factual support in the complaint.
Alleges failure to disclose material information
The allegations in the Krieger Complaint, a class action lawsuit filed against Harris Teeter, allege that the company failed to properly disclose material information to investors. Similar allegations have been made in state court lawsuits, but in this case, Krieger has brought a claim under the securities exchange act section 14(a) and 20(a). This means that he must prove that the company violated federal securities laws and broke a fiduciary duty to investors.
The WHC contends that it did not properly disclose the fact that the property would be occupied by a grocery store. This development would result in increased business traffic. The agreement required both parties to maintain confidentiality. The fact that the property was occupied by Food Lion could have influenced the decision of the company to build the grocery store. Alleges failure to disclose material information in Harris Teeter Merger lawsuit
Claims that board members failed to adequately consider the value of Harris Teeter
A lawsuit alleging that the Harris Teeter Supermarkets board failed to properly consider the value of the grocery chain is making its way through the courts. The class-action lawsuit was filed against Harris Teeter, Inc., a Matthews-based grocery chain. The lawsuit states that the company failed to follow federal merger protections that would have made the transaction reasonable for its shareholders. The company is appealing the decision.