NorthStar Asset Management Group Inc.
Robbins Arroyo LLP: NorthStar Asset Management Group Inc. (NSAM) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against NorthStar Asset Management Group Inc. (NYSE: NSAM) (“NorthStar”) in the U.S. District Court for the District of Maryland. The complaint is brought on behalf of all purchasers of NorthStar securities pursuant to the company’s proposed merger between Colony, NorthStar, and NorthStar Realty Finance Corp. for alleged violations of the Securities Exchange Act of 1934 by NorthStar’s officers and directors. NorthStar provides asset management and other services in the United States and internationally.
NorthStar Accused of Issuing a Misleading Proxy Statement
According to the complaint, despite NorthStar being well-positioned to generate significant earnings in the foreseeable future, the company’s board has agreed to combine NorthStar with two weaker entities. Pursuant to the terms of the definitive merger agreement, NorthStar common stockholders will receive one share of their respective class of stock in the post-merger combined company, Colony NorthStar, Inc. The complaint alleges that the merger consideration is unfair to NorthStar common stockholders because they receive no premium for their shares. If the transaction is completed, NorthStar’s executives will receive significant amounts in executive compensation.
The complaint further states that the proxy statement contains incomplete and misleading information concerning the financial projections for Colony, NorthStar, and NorthStar Realty Finance Corp., which were relied upon by the NorthStar board in assessing the fairness of the merger consideration and by the company’s financial advisors, Evercore Group, L.L.C. and Goldman, Sachs & Co. in connection with preparing its fairness opinion; and certain information regarding the valuation analyses Evercore and Goldman Sachs performed in support of their fairness opinion. The complaint states that the inconsistencies between the projections disclosed in the proxy prevent stockholders from assessing the relative valuations of each company and the fairness of the exchange ratios.
NorthStar Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.