NEW YORK, March 18, 2021 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Sonic Automotive, Inc. ("Sonic" or the "Company") (NYSE: SAH). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether Sonic and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On February 18, 2021, Bloomberg published an article about Sonic entitled "CEO Charged With Choking Woman Garners Board Support, Not Rebuke: Governance watchdogs say a firmer response is needed after Sonic Automotive's David Smith was charged with assaulting a woman." The Bloomberg article reported, in relevant part, on the October 2020 arrest of Sonic Chief Executive Officer ("CEO") David Smith, who "was charged with three misdemeanor counts and one for felony assault by strangulation, a charge that can carry a sentence of as long as two years in prison." The article reported that "[b]arely 24 hours after [Smith's] release, Sonic's board—more than a quarter of which is made up of Smith family members, including the CEO's father and 93-year-old founder O. Bruton Smith—said it believed he was innocent and pledged its 'steadfast' support." Bloomberg added that "Sonic's ownership structure gives the company more room to shrug off any potential backlash. . . . The Smith family has about 80% of the voting power despite holding only a third of the shares outstanding because of a dual-class structure with supervoting stock."
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980
SOURCE Pomerantz LLP