The lawsuit against Rocket and Redfin, including CEO Glenn Kelman and various board members, claims violations of federal securities law and Delaware fiduciary duty statutes during the negotiation of Rocket's acquisition of Redfin. Plaintiff Morano argues the defendants submitted misleading proxy statements to the SEC, omitting critical information about a conflict of interest involving Goldman Sachs, which advised Redfin while also having financial ties to Rocket. The case raises issues about inadequate disclosure of material facts essential for shareholder decision-making regarding the acquisition.
According to the complaint, the proxy statement omitted and misrepresented material facts, including a conflict of interest involving Goldman Sachs in the proposed acquisition.
The two firms announced the proposed acquisition in early March, raising concerns about the disclosure of conflicts and misleading information provided to shareholders.
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