CASESApplebee's International, Inc. Takeover Litigation
Gardy & Notis, LLP has been appointed by the Court as lead counsel for shareholders of Applebee's International, Inc. (NASDAQ: APPB) seeking to prevent a leveraged buyout of Applebee's based on allegations that the shareholder vote on the transaction disenfranchised public shareholders because the proxy materials failed to disclose Applebee's alternative plan to transition to a franchise-based model and distribute to shareholders the proceeds of from sales of its company-owned stores to franchisees.
Gardy & Notis, LLP achieved a settlement of the case whereby the proxy materials were amended to disclose the particulars of the alternative plan and the full financial projections for the alternative plan, among other things. In approving the settlement, the Chancellor of the Delaware Court of Chancery, William B. Chandler, III, commented: "Now, to your credit, Mr. Notis, and your firm's credit, you were able to find information that the shareholders should know about. And I agree with you that this was information that passes the threshold test, the TSC standard for materiality, and that it should have been disclosed. That is a victory that you achieved, for the shareholders, at some risk... It added real value to the proposed deal."
The case is New Jersey Building Laborers Pension and Annuity Funds v. Applebee's International, Inc., C.A. No. 3124-CC, Delaware Court of Chancery.
For more information regarding the lawsuit or to obtain a copy of the complaint or any Court filings, please contact us.