WILMINGTON, Del. (Legal Newsline) – An owner of Sonic Corp. stock alleges the company and its board of directors filed a misleading proxy statement regarding a proposed merger.
Anthony Franchi, individually and on behalf of all others similarly situated, filed a complaint on Nov. 1 in the U.S. District Court for the District of Delaware against Sonic Corp., J. Clifford Hudson; Tony D. Bartel; R. Neal Black, et al. over allege violation of the Securities Exchange Act.
According to the complaint, on Sept. 24, Sonic's board of directors caused the company to enter into an agreement and plan of merger with Inspire Brands. The suit states the merger agreement outlined that stockholders would receive $43.50 in cash for each share of Sonic common stock they hold.
The plaintiff alleges the proxy statement filed with the U.S. Securities and Exchange Commission on Oct. 22 omits material information regarding the proposed transaction, making it false and misleading.
The plaintiff holds Sonic Corp., J. Clifford Hudson; Tony D. Bartel; R. Neal Black, et al. responsible because the defendants allegedly disseminated false and misleading proxy statement and the statement is an essential link for the plaintiff and stockholders to approve the transaction.
The plaintiff seeks judgment for rescissory damages, award of costs, attorneys' and expert fees, and such other and further relief as the court may deem just and proper. He is represented by Gina M. Serra and Brian D. Long of Rigrodsky & Long in Wilmington, Delaware and Richard A. Maniskas of RM Law PC in Berwyn, Pennsylvania.
U.S. District Court for the District of Delaware case number 1:18-cv-01724-UNA