Levi & Korsinsky, LLP and Ashby & Geddes, P.A. Announce Pendency of Stockholder Class Action and Proposed Settlement Involving Purchasers of Alloy Steel Common Stock

IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

WILMINGTON, Del., Feb. 2, 2024 /PRNewswire/ --

SUMMARY NOTICE OF PENDENCY OF STOCKHOLDER CLASS ACTION AND PROPOSED SETTLEMENT, SETTLEMENT HEARING, AND RIGHT TO APPEAR

TO: All record and beneficial owners of Alloy Steel common stock, as of September 17, 2021 (the date of the consummation of the Merger), who received Merger consideration, together with their respective successors and assigns.¹

Please read this SUMMARY notice carefully.  your rights will be affected by a class action lawsuit pending in this court.

YOU ARE HEREBY NOTIFIED, pursuant to an Order of the Court of Chancery of the State of Delaware (the "Court"), that the above-captioned stockholder class action (the "Action") is pending in the Court. 

YOU ARE ALSO NOTIFIED that Plaintiffs Karsan Value Funds and Robert Gruters ("Plaintiffs"), on behalf of themselves and the Class, have reached a proposed settlement with defendants Kostecki Brokerage Pty Ltd., Maria Kostecki, and Steven Kostecki ("Defendants") for $9,500,000.00 USD in cash (the "Settlement").  The terms of the Settlement are stated in the Stipulation and Agreement of Compromise and Settlement between Plaintiffs and Defendants, dated December 11, 2023 (the "Stipulation"), a copy of which is available at www.AlloySteelStockholderSettlement.com. The proposed Settlement, if approved, will resolve all claims in the Action as against the Defendants. 

A hearing (the "Settlement Hearing") will be held on April 4, 2024 at 11:00 a.m., before The Honorable Lori W. Will, Vice Chancellor, in person at the Court of Chancery of the State of Delaware, New Castle County, Leonard L. Williams Justice Center, 500 North King Street, Wilmington, Delaware 19801, to, among other things:

a. determine whether the Action may be finally maintained as a non-opt-out class action and whether the Class should be finally certified, for purposes of the Settlement, pursuant to Court of Chancery Rules 23(a), 23(b)(1), and 23(b)(2);

b. determine whether Plaintiffs may be finally appointed as the representatives for the Class and Plaintiffs' Counsel finally appointed as counsel for the Class, and whether Plaintiffs and Plaintiffs' Counsel have adequately represented the interests of the Class in the Action;

c. determine whether the proposed Settlement on the terms and conditions provided for in the Stipulation is fair, reasonable, and adequate to the Class, and should be approved by the Court;

d. determine whether a Judgment, substantially in the form attached as Exhibit D to the Stipulation, should be entered dismissing the Action with prejudice as against the Defendants;

e. determine whether the proposed Plan of Allocation of the Net Settlement Fund is fair and reasonable, and should therefore be approved;

f. determine whether the application by Plaintiffs' Counsel for a Fee and Expense Award should be approved;

g. hear and rule on any objections to the Settlement, the proposed Plan of Allocation, and/or to the application by Plaintiffs' Counsel for an award of attorneys' fees and expenses; and

h. consider any other matters that may properly be brought before the Court in connection with the Settlement.

Plaintiffs' Counsel may petition the Court to award incentive awards to Plaintiffs.  Any such incentive award would be paid solely out of the Fee and Expense Award to Plaintiffs' Counsel.  Neither the Class nor the Settling Parties will have any separate responsibility with respect to any such incentive award.  Any updates regarding the Settlement Hearing, including any changes to the date or time of the hearing or updates regarding in-person or remote appearances at the hearing, will be posted to the Settlement website, www.AlloySteelStockholderSettlement.com.

If you are a member of the Class, your rights will be affected by the pending Action and the Settlement, and you may be entitled to share in the Net Settlement Fund.  If you have not yet received the Notice, you may obtain a copy of the Notice by contacting the Settlement Administrator toll free at 1-888-703-0748.  A copy of the Notice can also be downloaded from the Settlement website, www.AlloySteelStockholderSettlement.com.

If the Settlement is approved by the Court and the Effective Date occurs, the Net Settlement Fund will be distributed on a pro rata basis to "Eligible Class Members" in accordance with the proposed Plan of Allocation stated in the Notice or such other plan of allocation as is approved by the Court.  Under the proposed Plan of Allocation, "Eligible Class Members" consist of all Class members who were record and/or beneficial owners of Alloy Steel common stock, as of September 17, 2021 (the date of the consummation of the Merger), who received Merger consideration, together with their respective successors and assigns.  Pursuant to the proposed Plan of Allocation, each Eligible Class Member will be eligible to receive a pro rata payment from the Net Settlement Fund equal to the product of (i) the number of Eligible Shares held by the Eligible Class Member and (ii) the "Per-Share Recovery" for the Settlement, which will be determined by dividing the total amount of the Net Settlement Fund by the total number of Eligible Shares.  As explained in further detail in the Notice, pursuant to the Plan of Allocation, payments from the Net Settlement Fund to Eligible Class Members will be made in the same manner in which Eligible Class Members received the Merger Consideration.  Eligible Class Members do not have to submit a claim form to receive a payment from the Settlement.

Any objections to the proposed Settlement, the proposed Plan of Allocation, or Plaintiffs' Counsel's application for an award of attorneys' fees and expenses in connection with the Settlement must be filed with the Register in Chancery in the Court of Chancery of the State of Delaware and delivered to Plaintiffs' Counsel and Defendants' Counsel such that they are received no later than March 20, 2024, in accordance with the instructions set forth in the Notice.

Please do not contact the Court or the Office of the Register in Chancery regarding this notice.  All questions about this notice, the proposed Settlement, or your eligibility to participate in the Settlement should be directed to the Settlement Administrator or Plaintiffs' Counsel.

Requests for the Notice should be made to the Settlement Administrator:

Toll Free: 1-888-703-0748
Email: [email protected]
Website: www.AlloySteelStockholderSettlement.com

Inquiries, other than requests for the Notice, should be made to Plaintiffs' Counsel:

OF COUNSEL:

LEVI & KORSINSKY, LLP
Donald J. Enright
Elizabeth K. Tripodi
Jordan A. Cafritz
1101 30th Street, N.W., Suite 115
Washington, DC 20007
(202) 524-4290

ASHBY & GEDDES, P.A.
Stephen E. Jenkins (#2152)
Richard D. Heins (#3000)
Samuel M. Gross (#6811)
500 Delaware Avenue, 8th Floor
P.O. Box 1150
Wilmington, DE 19899
(302) 654-1888

Attorneys for Plaintiffs

BY ORDER OF THE COURT OF CHANCERY OF THE STATE OF DELAWARE

¹ Any capitalized terms used in this Summary Notice that are not otherwise defined in this Summary Notice shall have the meanings given to them in the Notice.

URL: www.AlloySteelStockholderSettlement.com

SOURCE Levi & Korsinsky, LLP