NEW YORK, Nov. 23, 2016 /PRNewswire/ -- Sadis & Goldberg LLP ("Sadis & Goldberg") today announced that a class action has been commenced in the United States District Court of the Southern District of New York on behalf of former minority common stockholders of E-Commerce China Dangdang, Inc. ("Dangdang") who held Dangdang common stock at any time between May 28, 2016 and the September 20, 2016 (the "Class Period") closing of a merger transaction.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have questions concerning this notice or your rights or interests, please contact plaintiffs' counsel, Sam Lieberman of Sadis & Goldberg at (212)-573-8164 or via email at [email protected] If you are a member of this class, you can contact plaintiffs' counsel to view a copy of the complaint. Any member of the putative class may also move the Court to serve as lead plaintiff through counsel of their choice, or may choose to take no action and remain a passive class member.
The complaint charges Dangdang, some of its affiliates, and certain of its officers and directors with violations of the Securities Exchange Act of 1934 (the "Exchange Act") as well as common law claims for breach of fiduciary duties and misrepresentation.
On May 28, 2016, Dangdang's board of directors agreed to sell Dangdang in a going private-merger to a buyers' group that included its controlling stockholder and that held as a group over 80% of the voting power. The board did so while rejecting a higher offer from an independent third-party bidder. The complaint alleges that the defendants' Form 13E-3 and related disclosures, filed in June 2016 were materially misleading in claiming that the Special Committee that voted to accept the low bid from the controlling group had "independent" control of the sales process and that the merger was "procedurally fair" when in fact the Special Committee was not independent, did not engage the services of independent counsel, and the going-private merger was not entirely unfair. These misrepresentations violated Section 13(e) of the Exchange Act and Rule 13e-3 thereunder.
Plaintiffs seek to recover damages on behalf of all holders of Dangdang common stock during the Class Period, including the fair value of their common stock cashed out in the Going-Private transaction.
This action was filed by Sadis & Goldberg, which has significant experience prosecuting securities law claims and class actions. Sadis & Goldberg has represented hedge funds, other investment funds, and individual investors in securities litigation for almost two decades. Please visit www.sglawyers.com for more information.
SOURCE Sadis & Goldberg LLP