Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Central Vermont Public Service Corp.
September 15 2011 - 2:39PM
Business Wire
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/cvps/) today announced that a class
action has been commenced in the United States District Court for
the District of Vermont on behalf of a proposed class of Central
Vermont Public Service Corp. (“CVPS”) (NYSE:CV) shareholders who
held CVPS shares during the period beginning May 30, 2011 through
and including the closing of the proposed acquisition of CVPS by
Gaz Métro Limited Partnership (“Gaz Métro”).
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiffs’ counsel, Darren Robbins of
Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at
djr@rgrdlaw.com. If you are a member of this class, you can view a
copy of the complaint as filed or join this class action online at
http://www.rgrdlaw.com/cases/cvps/. Any member of the putative
class may move the Court to serve as lead plaintiff through counsel
of their choice, or may choose to do nothing and remain an absent
class member.
The complaint charges CVPS and its Board of Directors (the
“Board”) with breaches of fiduciary duty and aiding and abetting
breaches of fiduciary duty under Vermont state law, and CVPS, the
Board and Gaz Métro with violations of the Securities Exchange Act
of 1934 (“1934 Act”). CVPS operates as an electric utility
company.
The complaint alleges that the Board, aided and abetted by CVPS,
in bad faith and for self-interested reasons, tilted the sales
process for the Company in favor of Fortis Inc. and against Gaz
Métro and thereby obligated the Company to improperly pay Fortis a
termination fee of $19.5 million when the merger agreement with
Fortis was later terminated after Gaz Métro made a superior
proposal that was accepted by the Board. The end result of CVPS and
the Board’s misconduct was to destroy shareholder value in the same
amount of the termination fee, or approximately $1.57 per share.
The complaint seeks damages for the Board’s breaches of fiduciary
duty in this regard.
The complaint further alleges that on August 29, 2011, CVPS
filed a Form DEFM 14A Proxy Statement (the “Proxy”) that omitted or
misrepresented material information regarding the proposed Fortis
and Gaz Métro acquisitions in violation of §§14(a) and 20(a) of the
1934 Act and in contravention of the Board’s fiduciary duties under
state law. The Proxy fails to disclose, among other things,
material information regarding: (i) the Company’s current and
future value; (ii) details about the sales process, including
details concerning the favored treatment of Fortis, and the
conflicts of interests faced by the persons involved; and (iii) the
financial analysis conducted by the Company’s financial advisor.
Without this material information, the Company’s public
shareholders are precluded from casting a fully informed vote. The
complaint seeks injunctive relief in connection with defendants’
violations of §§14(a) and 20(a) of the 1934 Act.
Plaintiffs seek injunctive, monetary and other equitable relief
on behalf of all shareholder of CVPS who held CVPS common stock
during the period beginning May 30, 2011 through and including the
closing of the proposed acquisition of CVPS by Gaz Métro (the
“Class”). The plaintiff is represented by Robbins Geller, which has
expertise in prosecuting investor class actions and extensive
experience in actions involving financial fraud.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San
Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and
Atlanta, is active in major litigations pending in federal and
state courts throughout the United States and has taken a leading
role in many important actions on behalf of defrauded investors,
consumers, and companies, as well as victims of human rights
violations. The Robbins Geller Web site (http://www.rgrdlaw.com)
has more information about the firm.
Central Vermont Public Service (NYSE:CV)
Historical Stock Chart
From Jun 2024 to Jul 2024
Central Vermont Public Service (NYSE:CV)
Historical Stock Chart
From Jul 2023 to Jul 2024