A New York-based firm that specializes in class-action lawsuits announces Tuesday a class-action lawsuit has been filed against Papa Murphy’s Holdings Inc., which was sold earlier this year.
MTY Food Group Inc. of Canada announced in April that it would acquire Papa Murphy’s, the Vancouver-based take-and-bake pizza maker. The sale, which has been finalized, called on MTY to acquire all Papa Murphy’s stock at $6.45 per share, for a total of approximately $190 million. The acquisition would include Papa Murphy’s approximately $77.4 million debt, which MTY will repay using its credit and cash.
The Monteverde & Associates PC complaint filed in U.S. District Court in Tacoma contends the offer was inadequate and alleges that materially incomplete and misleading information was provided about Papa Murphy’s financials and the transaction.
The complaint says shareholders who held Papa Murphy’s securities as of the close of the tender offer on May 22 have been harmed by Papa Murphy’s and its board of directors. Papa Murphy’s communications division did not respond to a request for comment.
