Robbins Arroyo LLP: NorthStar Asset Management Group Inc. (NSAM) Misled Shareholders According to a Recently Filed Class Action
November 28 2016 - 7:51PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed against NorthStar Asset Management
Group Inc. (NYSE: NSAM) ("NorthStar") in the U.S. District Court
for the District of Maryland. The complaint is brought on behalf of
all purchasers of NorthStar securities pursuant to the company's
proposed merger between Colony, NorthStar, and NorthStar Realty
Finance Corp. for alleged violations of the Securities Exchange Act
of 1934 by NorthStar's officers and directors. NorthStar provides
asset management and other services in the United States and
internationally.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/northstar-asset-management-group-inc
NorthStar Accused of Issuing a Misleading Proxy
Statement
According to the complaint, despite NorthStar being
well-positioned to generate significant earnings in the foreseeable
future, the company's board has agreed to combine NorthStar with
two weaker entities. Pursuant to the terms of the definitive merger
agreement, NorthStar common stockholders will receive one share of
their respective class of stock in the post-merger combined
company, Colony NorthStar, Inc. The complaint alleges that the
merger consideration is unfair to NorthStar common stockholders
because they receive no premium for their shares. If the
transaction is completed, NorthStar's executives will receive
significant amounts in executive compensation.
The complaint further states that the proxy statement contains
incomplete and misleading information concerning the financial
projections for Colony, NorthStar, and NorthStar Realty Finance
Corp., which were relied upon by the NorthStar board in assessing
the fairness of the merger consideration and by the company's
financial advisors, Evercore Group, L.L.C. and Goldman, Sachs &
Co. in connection with preparing its fairness opinion; and certain
information regarding the valuation analyses Evercore and Goldman
Sachs performed in support of their fairness opinion. The complaint
states that the inconsistencies between the projections disclosed
in the proxy prevent stockholders from assessing the relative
valuations of each company and the fairness of the exchange
ratios.
NorthStar Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20161128006154/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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