"The lawsuit claims Two Harbors submitted materially incomplete and misleading financial disclosures, alleging that the board agreed to unfair deal protections and that executives timed stock trades to personally benefit from the mergers and acquisitions activity."
"The CCM agreement contains preclusive deal protection devices designed to block competing offers and make the transaction a fait accompli, with a specific example being the $25.4 million fee that Two Harbors must pay if the deal collapses."
"The plaintiff raises questions about whether company executives may have traded shares around the UWMC deal's announcement to maximize their profits, suggesting that the timing of these trades could have influenced strategic decisions."
A lawsuit filed against Two Harbors alleges incomplete financial disclosures and unfair deal protections. The complaint claims executives timed stock trades for personal gain during mergers. It names chairman Stephen Kasnet and CEO William Greenberg as defendants. The CCM agreement reportedly includes deal protection devices that hinder competing offers. The lawsuit highlights a $25.4 million fee owed to CCM if the deal fails, intended to cover a breakup fee. Questions arise about executives trading shares around the UWMC deal announcement to maximize profits, raising concerns about their motivations.
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]