Chimicles & Tikellis LLP brought suit challenging a proposed refinancing to sell control of Patriot American to an acquisition group which resulted in favoritism being afforded to the acquisition group. The lawsuit claimed that the Board of Directors’ acts in effectively selling control of the company to the acquisition group for inadequate consideration and without having properly explored alternatives to the proposed sale were in breach of its fiduciary duties. The litigation was settled after extensive negotiations providing for a mandatory Rights Offering which assured all shareholders the opportunity to participate in the refinancing on the same terms as the acquisition group.

   Friday, July 04th, 2008