SEATTLE (Legal Newsline) - A large online clothes retailer is facing a lawsuit over claims of deceiving stockholders.
Patrick Pisano, on behalf of himself and those similarly situated, filed a class action lawsuit on Sept. 3 in the U.S. District Court of the Western District of Washington at Seattle against Zulily Inc., Darrell Cavens, Mark Vadon, W. Eric Carlborg, John Geschke, Mike Gupta, Youngme Moon, Michael Potter, Spencer Rascoff, Liberty Interactive Corp., Mocha Merger Sub Inc., and Ziggy Merger Sub LLC, citing violations of the Securities Exchange Act.
Pisano claims that the defendants violated the SEA by filing a materially incomplete and misleading Schedule 14D-9 Solicitation/Recommendation Statement to the Securities Exchange Commission on Sept. 1, in which it recommends Zulily stockholders to tender their shares for inadequate compensation, whereby Liberty Interactive Corp can acquire outstanding stocks inexpensively and become the main shareholder. Plaintiff argues that both Zulily and Liberty conspired to benefit from these transactions through falsifying facts and manipulation and is therefore a violation of SEA.
Pisano is demanding a trial by jury and is suing for rescissory damages, for the defendants to disclose all of their proposed transactions and terms, for the defendants to rescind their proposed transaction, attorney fees and court costs, and other relief as deemed just by the court. He is represented by Roger Townsend of the law office of Brewkin, Johnson & Townsend PLLC in Seattle, Wash. and by Evan J. Smith and Marc L. Ackerman of Brodsky & Smith in Bala Cynwyd, Pa.
U.S. District Court for the Western District of Washington at Seattle case number 2:15-cv-01424-MAT