Pollack Solomon and Rupp Baase Law Firms Announce Amended Complaint

NEW YORK, Nov. 10, 2020 /PRNewswire/ -- Pollack Solomon Duffy LLP, a law firm with offices in Boston and New York, and Rupp Baase Pfalzgraf Cunningham, LLC, a law firm with offices throughout New York State, announce the filing of an amended complaint in a class action lawsuit on behalf of a class of holders of Redemption notes, Group 1 notes and Group 2 notes issued by EYP Group Holdings, Inc. or EYP Holdings, Inc. who did not culpably participate in the creation and implementation of an ESOP scheme at EYP. The lawsuit seeks to recover damages under, among other things, federal securities laws, for the named plaintiffs and class members who sold or received securities in connection with the ESOP transaction on or about June 28, 2016 or during the acquisition of SBS on or around December 30, 2016, in return for which the named plaintiffs and class members received securities in the form of Redemption Group, Group 1 or Group 2 notes. The complaint asserts that such noteholders have held their interests at some time since late 2015. The complaint asserts that the Class excludes Defendants and any person, firm, trust, corporation, or other entity related to or affiliated with any of the Defendants, and any other noteholders who culpably participated in the development of the ESOP scheme.

The action has been filed in the United States District Court for the Southern District of New York and is titled Kohlberg, et al. v. Birdsey, et al., Civil Action No. 20-cv-6250, before the Honorable Andrew L. Carter, Jr.

The Class Period covered by this class action is November 10, 2015 through March 16, 2020. The complaint alleges that during the Class Period, Defendants took steps to over-leverage EYP as part of inflated sales prices through which only they would receive cash, while potential class members sold securities in and to EYP and/or received securities from EYP in the form of sham and uncollectible Redemption Group, Group 1 and/or Group 2 notes.  

On October 5, 2020, Plaintiffs filed an Amended Complaint alleging that Long Point Capital, Inc., certain of its affiliates, and certain board members of EYP made materially false and/or misleading statements, as well as failed to disclose material facts about EYP's business. Specifically, the Amended Complaint alleges that Defendants conspired to provide false information to inflate valuations used to price the EYP stock, allowing Long Point as the controlling stockholder to receive more than $40 million in cash, while saddling EYP with debt that made notes issued to minority stockholders for their stock uncollectible.

A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, pursuant to the Private Securities Litigation Reform Act, you must move the Court no later than 60 days from the date of this notice, or January 9, 2021. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY RETAIN COUNSEL OF YOUR CHOICE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. AN INVESTOR'S ABILITY TO SHARE IN A POTENTIAL FUTURE RECOVERY OF DAMAGES IS NOT DEPENDENT UPON SERVING AS LEAD PLAINTIFF.

SOURCE Pollack Solomon Duffy LLP

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