Law Firm Reaches out to Dole Food Investors Amid Fraud Investigation
NEW YORK – It appears that the turmoil regarding Dole executives’ alleged fraudulent scheme is still under close examination.
Just days after CEO David Murdock settled the lawsuit, a New York law firm, Bronstein, Gewirtz & Grossman, LLC, announced today that it is currently investigating potential claims on behalf of shareholders who bought stock in the company between January 2, 2013 to October 31, 2013. The firm is encouraging shareholders to come forward with any facts pertaining to this matter so they could assist with the examination.
As we previously reported, Vice Chancellor Travis Laster found that Murdock and other company executives had allegedly undervalued the company after fraudulently manipulating the sale process.
A press release from the firm states, “[The executives’] intention was to deceive the investing public, thus allowing the price of Dole’s stock to drop, enabling Murdock to buy Dole Food Company at an unnaturally lowered price.”
On June 10, 2013, Murdock offered to take Dole private at a price of $12.00 per share. On August 12, 2013, the Dole Board announced its definitive merger agreement with Murdock, stating that he would acquire all of the outstanding shares of Dole’s stock for $13.50 per share. The merger completed on November 1, 2013.
On December 9, 2015, Murdock agreed to settle the litigation in court. If Vice Chancellor Laster approves the class action settlement, shareholders will receive damages of $101 million, plus interest of at least $14 million, in the months ahead. In addition, hedge funds affiliated with Merion Capital, Hudson Bay Capital, Magnetar Capital, and Fortress Investment Group, could receive more than $300 million in damages and interest.
Stay tuned for any further updates relating to this story.
