In a legal response, Redfin and its board challenge Morano's motion for expedited discovery, asserting it is unjustified and falls under the Private Securities Litigation Reform Act. Redfin labels the lawsuit as standard yet unwarranted stockholder litigation that often arises post-merger announcements, emphasizing that Morano’s claims lack merit and burden defendants with unnecessary discovery. Similarly, Rocket counters Morano's assertions about misleading proxy statements, reinforcing their disclosures as complete and not materially misleading. Both companies argue that such litigations threaten to disrupt beneficial transactions.
Redfin claims that Morano's motion for expedited discovery is unwarranted and reflects baseless litigation following a public merger, alleging no justification was provided for haste.
The Redfin defendants argue that Morano's fiduciary duty complaint lacks merit, stating that it contradicts standard practices in high-stakes M&A transactions and imposes undue burden.
Rocket asserts that allegations against its proxy statement are unfounded, emphasizing that the disclosed lending relationship is transparent and not misleading, contrary to Morano's claims.
Both Redfin and Rocket contend that litigation threats post-merger are frivolous and that settlements are often pursued to avoid hassle related to costly discovery.
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