Cases
Krispy Kreme Doughnuts, Inc. (NYSE: KKD)
Securities Class Action
Overview
Overview
- Date:
- 7/6/2016
- Company Name:
- Krispy Kreme Doughnuts, Inc.
- Stock Symbol:
- KKD
- Company Name - Buyer:
- Cotton Merger Sub, Inc.
- Class Period:
- FROM 6/24/2016
- Status:
- Closed/Complete
- Merger Announcement Date:
- 5/8/2016
- Court:
- U.S. District Court: Middle District of North Carolina
NEW YORK, July 6, 2016 – Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the North Carolina Middle District Court on behalf of all persons or entities who held Krispy Kreme Doughnuts, Inc. (NYSE: KKD) securities on June 24, 2016 (the “Class Period”).
On May 8, 2016, Krispy Kreme and JAB jointly announced that they had reached a definitive Agreement and Plan of Merger ("Merger Agreement") under which Krispy Kreme will merge with and into Cotton Merger Sub, Inc,, with Krispy Kreme surviving as a wholly-owned subsidiary of Cotton Parent, Inc. (the "Proposed Transaction"). The shareholder vote on the Proposed Transaction is expected to occur on July 27, 2016.
Pursuant to the terms of the Merger Agreement, which was unanimously approved by the Board, Krispy Kreme shareholders will receive $21.00 in cash per share for each share of Krispy Kreme they own. The lawsuit claims that the offer is inadequate and does not reflect the company's positive financial results in recent quarters as well as it below at least one analyst's price target of $23.00 per share.
The lawsuit alleges that the Schedule 14A Proxy Statement (the "14A") filed with the Securities and Exchange Commission ("SEC") provides materially incomplete and misleading information about the company and the Proposed Transaction, in violation of Sections 14(a) and 20(a) of the Exchange Act. The 14A fails to provide Krispy Kreme's shareholders with material information concerning the financial and procedural fairness of the Proposed Transaction.
Furthermore, according to the lawsuit, the Merger Agreement includes a non-solicitation provision, an unlimited matching rights provision, and a $42 million termination fee which essentially ensure that a superior bidder will not emerge, as any potential suitor will undoubtedly be deterred from expending the time, cost, and effort of making a superior proposal while knowing that JAB can easily foreclose a competing bid.
If you held Krispy Kreme securities during the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters please contact Melissa A. Fortunato, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.
On May 8, 2016, Krispy Kreme and JAB jointly announced that they had reached a definitive Agreement and Plan of Merger ("Merger Agreement") under which Krispy Kreme will merge with and into Cotton Merger Sub, Inc,, with Krispy Kreme surviving as a wholly-owned subsidiary of Cotton Parent, Inc. (the "Proposed Transaction"). The shareholder vote on the Proposed Transaction is expected to occur on July 27, 2016.
Pursuant to the terms of the Merger Agreement, which was unanimously approved by the Board, Krispy Kreme shareholders will receive $21.00 in cash per share for each share of Krispy Kreme they own. The lawsuit claims that the offer is inadequate and does not reflect the company's positive financial results in recent quarters as well as it below at least one analyst's price target of $23.00 per share.
The lawsuit alleges that the Schedule 14A Proxy Statement (the "14A") filed with the Securities and Exchange Commission ("SEC") provides materially incomplete and misleading information about the company and the Proposed Transaction, in violation of Sections 14(a) and 20(a) of the Exchange Act. The 14A fails to provide Krispy Kreme's shareholders with material information concerning the financial and procedural fairness of the Proposed Transaction.
Furthermore, according to the lawsuit, the Merger Agreement includes a non-solicitation provision, an unlimited matching rights provision, and a $42 million termination fee which essentially ensure that a superior bidder will not emerge, as any potential suitor will undoubtedly be deterred from expending the time, cost, and effort of making a superior proposal while knowing that JAB can easily foreclose a competing bid.
If you held Krispy Kreme securities during the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters please contact Melissa A. Fortunato, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.