• September 4, 2020
• CMZ Law
• no comments

CMZ represented the owners of a company who merged with a larger competitor company. The merger provided stock in the larger competitor company to our clients. A few days after the merger, the larger competitor announced that its fourth-quarter earnings were below expectations. Our clients had been provided with financial documents and a prospectus that showed a much higher value for the stock than what the company reported a few days later. Our clients had obviously been deceived and received much less in value that what their company was worth. CMZ filed suit in state court and the competitor company and invoked an arbitration clause. CMZ represented our clients in arbitration and sought the difference in value of the stock given at the time of the merger and the value of the stock after the revelation of the less than expected earnings. The arbitration panel agreed our clients had been deceived and awarded the difference in stock values we sought for our clients.