Robbins Umeda LLP Announces an Investigation of BGC Partners, Inc.
March 15 2012 - 4:57PM
Business Wire
Shareholder rights firm Robbins Umeda LLP is investigating
possible breaches of fiduciary duty and other violations of the law
by certain officers and directors at BGC Partners, Inc. (NASDAQ:
BGCP). Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Gregory E.
Del Gaizo at (800) 350-6003, info@robbinsumeda.com, or via the
shareholder information form on the firm's website.
Robbins Umeda LLP's investigation focuses on whether BGCP's
controlling shareholder, Cantor Fitzgerald, L.P., and members of
the board of directors at BGCP breached their fiduciary duties to
shareholders. In particular, the firm is investigating a series of
transactions agreed to by BGCP's board that were designed to unduly
benefit Cantor Fitzgerald and Howard W. Lutnick, who acts as CEO of
both BGCP and Cantor Fitzgerald, at the expense of BGCP and its
minority shareholders.
First, BGCP's board approved an issuance of notes to Cantor
Fitzgerald at an unfairly low interest rate and with the option to
convert to stock, which would increase BGCP's outstanding shares by
nearly 40% and substantially dilute current minority shareholders'
stake. Then, BGCP conducted an equity offering at its own expense
that solely served to benefit Cantor Fitzgerald. Finally, BGCP
amended Lutnick's change-in-control agreement to dramatically
increase the cash windfall he will gain in the event he and Cantor
Fitzgerald, as controlling shareholders, decide to sell BGCP. BGCP
has and will be severely damaged as a result of these transactions,
while conversely producing substantial benefits for Cantor
Fitzgerald and Lutnick.
Robbins Umeda LLP highlights BGCP shareholders have the option
to file a derivative action to hold those officers and directors
accountable for damaging the company. Remedies commonly sought in
derivative actions include corporate governance reforms designed to
prevent future misconduct, removal of officers or directors whose
misconduct injured the corporation, and monetary payments in the
form of damages and disgorgement of ill-gotten gains.
Robbins Umeda LLP is a nationally recognized leader in
securities litigation and 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. For more information,
please go to http://www.robbinsumeda.com.
Press release link:
http://www.robbinsumeda.com/shareholders-rights-blog/bgc-partners/
Attorney Advertising. Past results do not guarantee a similar
outcome.
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