NEW YORK, May 07, 2018 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that it has filed a class action lawsuit against Fairmount Santrol Holdings Inc. and other defendants (“Fairmount” or the “Company”) (NYSE:FMSA) in the United States District Court for the District of Delaware on behalf of a class consisting of our client and the other public stockholders of Fairmount who have been harmed by Fairmount and its board of directors (the "Board") in connection with alleged violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") pertaining to the proposed acquisition of the Company by SCR-Sibelco NV ("Sibelco").
Under the terms of the merger agreement (the "Merger Agreement”) Sibelco will own, directly or indirectly, approximately 65% of the shares of the combined company’s common stock and Fairmount stockholders, including holders of certain Fairmount equity awards, immediately prior to the effective time, will own the remaining approximately 35% of the outstanding shares. The Complaint alleges that the Board authorized the filing of a materially incomplete and misleading Registration Statement on form S-4/A (the "Proxy") with the Securities and Exchange Commission ("SEC"), in violation of Sections 14(a) and 20(a) of the Exchange Act. In particular, the Complaint alleges that the Proxy contains materially incomplete and misleading information concerning: (i) financial projections for both companies; (ii) the valuation analyses performed by interested parties in support of the proposed acquisition; (iii) information relating to the background of the proposed acquisition; and (iv) potential conflicts of interest faced by interested parties.
Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the July 1, 2018 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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