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Case Details for "U.S. Sugar Corp."
U.S. Sugar Corp. Settles Securities Class Action Lawsuit
U.S. Sugar Corp. and employee shareholders of the largest U.S. cane sugar producer have agreed on a settlement to a lawsuit that claimed U.S. Sugar's board failed to inform shareholders of two lucrative buy-out offers, then rejected the deals.
The federal suit was filed in January 2008 on behalf of more than 4,000 current and former U.S. Sugar employees. They originally sought $150 million. The lawsuit alleged that employees could only sell their shares back to the company, which had been offering up to $204 per share. But in 2005, U.S. Sugar was offered $575 million to sell the business, or about $293 per share, a deal soundly rejected by its board a year later. The same deal was rejected again in 2007, yet employee shareholders were never told about either offer.
The preliminary agreement calls for U.S. Sugar to initially pay $8.4 million. If a planned $536 million deal with the state of Florida goes through to buy 73,000 acres of farmland from the company, U.S. Sugar then would pay plaintiffs an additional $7.5 million, according to the preliminary agreement.
Posted on:2009-10-06
Company: U.S. Sugar Corp.
Class: current and former U.S. Sugar employees
Scope: Nationwide
Type of Case: Securities
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