NEW YORK, June 16, 2020 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the board of directors of China XD Plastics Company Limited ("CXDC" or the "Company") (NASDAQ: CXDC) in connection with the proposed conflicted, interested-party acquisition of the Company by Faith Dawn Limited ("Faith Dawn"), an entity owned by CXDC's CEO, board chairman and majority owner Mr. Jie Han. Under the terms of the acquisition agreement, Faith Dawn will acquire all outstanding shares of CXDC for $1.20 per share in cash. Since Mr. Han also owns 50.1% of the common shares of CXDC, he effectively controls the Company and stands on both sides of the proposed acquisition.
If you own CXDC shares and wish to discuss this investigation or have any questions concerning this notice or your rights or interests, visit our website:
Or please contact:
Joshua Rubin, Esq.
1500 Broadway, 16th Floor
New York, NY 10036
Given the obvious conflicts inherent in the merger, WeissLaw is investigating whether CXDC's board acted independently in agreeing to the proposed acquisition and whether the $1.20 per share merger consideration reflects adequate compensation and maximum value for CXDC stockholders. As recently as January 2020, CXDC shares traded as high as $2.44 (more than double the per-share merger consideration), and the Company recently announced fiscal year 2019 revenue of $1.45 million, representing 13.6% year-over-year revenue growth and further calling into question the fairness of the deal.
Given these facts, WeissLaw is concerned whether CXDC's board was truly independent in agreeing to the proposed acquisition, whether the proposed acquisition undervalues the Company, and whether all material information related to the proposed acquisition is fully and fairly disclosed.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at [email protected]
SOURCE WeissLaw LLP