Robbins Umeda LLP Announces an Investigation of BGC Partners, Inc.
Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at BGC Partners, Inc. (NASDAQ: BGCP). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
Robbins Umeda LLP’s investigation focuses on whether BGCP’s controlling shareholder, Cantor Fitzgerald, L.P., and members of the board of directors at BGCP breached their fiduciary duties to shareholders. In particular, the firm is investigating a serious of transactions agreed to by BGCP’s board that were designed to unduly benefit Cantor Fitzgerald and Howard W. Lutnick, who acts as CEO of both BGCP and Cantor Fitzgerald, at the expense of BGCP and its minority shareholders.
First, BGCP’s board approved an issuance of notes to Cantor Fitzgerald at an unfairly low interest rate and with the option to convert to stock, which would increase BGCP’s outstanding shares by nearly 40% and substantially dilute current minority shareholders’ stake. Then, BGCP conducted an equity offering at its own expense that solely served to benefit Cantor Fitzgerald. Finally, BGCP amended Lutnick’s change-in-control agreement to dramatically increase the cash windfall he will gain in the event he and Cantor Fitzgerald, as controlling shareholders, decide to sell BGCP. BGCP has and will be severely damaged as a result of these transactions, while conversely producing substantial benefits for Cantor Fitzgerald and Lutnick.
Robbins Umeda LLP highlights BGCP shareholders have the option to file a derivative action to hold those officers and directors accountable for damaging the company. Remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.