NEW YORK, July 5, 2016 /PRNewswire/ -- Notice is hereby
given that Faruqi & Faruqi, LLP has filed a class action
lawsuit in the United States District Court for the Middle District
of North Carolina, case no.
1:16-cv-00612, on behalf of shareholders of Krispy Kreme Doughnuts,
Inc. ("Krispy Kreme" or the "Company") (NYSE:KKD) who held
Krispy Kreme securities on the record date, June 24, 2016, and have been harmed by Krispy
Kreme's and its board of directors' (the "Board") alleged
violations of Sections 14(a) and 20(a) of the Securities Exchange
Act of 1934 (the "Exchange Act") in connection with the
proposed sale of the Company to the private Dutch company JAB
Holdings B.V. ("JAB") through its Delaware company Cotton Parent, Inc.
On May 8, 2016, Krispy Kreme and
JAB jointly announced that they had reached a definitive Agreement
and Plan of Merger ("Merger Agreement") under which Krispy Kreme
will merge with and into Cotton Merger Sub, Inc,, with Krispy Kreme
surviving as a wholly-owned subsidiary of Cotton Parent, Inc. (the
"Proposed Transaction"). The shareholder vote on the Proposed
Transaction is expected to occur on July 27,
2016.
If you wish to obtain information concerning this action or
view a copy of the complaint, you can do so by clicking here:
www.faruqilaw.com/KKDnotice.
Pursuant to the terms of the Merger Agreement, which was
unanimously approved by the Board, Krispy Kreme shareholders will
receive $21.00 in cash per share for
each share of Krispy Kreme they own. The complaint claims that the
offer is inadequate and does not reflect the Company's positive
financial results in recent quarters as well as it below at least
one analyst's price target of $23.00
per share.
The complaint alleges that the Schedule 14A Proxy Statement (the
"14A") filed with the Securities and Exchange Commission ("SEC")
provides materially incomplete and misleading information about the
Company and the Proposed Transaction, in violation of Sections
14(a) and 20(a) of the Exchange Act. The 14A fails to provide
Krispy Kreme's shareholders with material information concerning
the financial and procedural fairness of the Proposed
Transaction.
Furthermore, according to the complaint, the Merger Agreement
includes a non-solicitation provision, an unlimited matching rights
provision, and a $42 million
termination fee which essentially ensure that a superior bidder
will not emerge, as any potential suitor will undoubtedly be
deterred from expending the time, cost, and effort of making a
superior proposal while knowing that JAB can easily foreclose a
competing bid.
Take Action
Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm
with extensive experience in prosecuting class actions, and
significant expertise in actions involving corporate fraud.
Faruqi & Faruqi, LLP, was founded in 1995 and the firm
maintains its principal office in New
York City, with offices in Delaware, California, and Pennsylvania.
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. Any member of the putative
class may move the Court to serve as lead plaintiff through counsel
of their choice, or may choose to do nothing and remain an absent
class member. If you wish to discuss this action, or have any
questions concerning this notice or your rights or interests,
please contact:
Nadeem Faruqi, Esq.
James M. Wilson, Jr., Esq.
FARUQI & FARUQI, LLP
685 3rd Avenue, 26th Floor
New York, NY 10017
Telephone: (877) 247-4292 or (212) 983-9330
E-mail: nfaruqi@faruqilaw.com
jwilson@faruqilaw.com
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SOURCE Faruqi & Faruqi, LLP