Alan R. Kahn - Maxxam Inc. Lawsuit. Alan R. Kahn v. Charles E. Hurwitz, et al., C.A. 4893-VCP

Alan R. Kahn Lawsuit Collection

"Dec 7, 2009 ... On September 11, 2009, a lawsuit entitled Alan R. Kahn v. Charles E. Hurwitz, et al., C.A. 4893-VCP was filed against the Company and its ..."

"Settlement of Litigation

On September 11, 2009, a lawsuit entitled Alan R. Kahn v. Charles E. Hurwitz, et al., C.A. 4893-VCP was filed against the Company and its Board of Directors in the Court of Chancery of the State of Delaware.

The lawsuit contained a variety of allegations, including that the defendants violated their fiduciary duties in approving the Reverse Stock Split, and that the cash out prices did not constitute fair value as required by Section 155(2) of the Delaware General Corporation Law.

The lawsuit asked for preliminary and permanent injunctions to stop the defendants from effectuating the Reverse Stock Split, rescission of the Reverse Stock Split if it was consummated before the lawsuit was resolved, unspecified damages and attorneys' fees. On October 9, 2009, a second lawsuit, entitled James L. and Eleanor A. Gayner v. Charles E. Hurwitz, et al., C.A. 4971-VCP, was filed against the Company and its Board of Directors in Delaware Court of Chancery.

The second lawsuit contained similar allegations, as well as allegations of inadequate disclosure, and asked for similar relief. Both lawsuits claimed to be brought on behalf of a purported class consisting of our common stockholders other than the defendants and their affiliates (the "Class").

The suits were consolidated on October 16, 2009, as In re MAXXAM Inc. Shareholders Litigation, Consol. C.A. 4893-VCP (the "Litigation").

The defendants in the Litigation have denied, and continue to deny, that any of them has committed or has threatened to commit any wrongdoing, violation of law or breach of duty to any plaintiff in the Litigation, the Class, or anyone, that they have any liability or owe any damages of any kind to the plaintiffs in the Litigation, the Class or anyone, and that any additional disclosures are required under any applicable rule, regulation, statute, or law, but are entering into the Settlement solely because they consider it desirable that the Litigation be settled and dismissed on the merits and with prejudice in order to

(i) eliminate the burden, inconvenience, expense, risk and distraction of further litigation,

(ii) finally put to rest and terminate all of the claims which were or could have been asserted against the Defendants in the Litigation, and

(iii) thereby permit the Reverse Stock Split to proceed without risk of injunctive or other relief. "

Source of Alan R. Kahn Lawsuit and Full Alan Kahn Document
http://www.istockanalyst.com/article/viewiStockNews/articleid/3693644