NEW YORK, March 31, 2017 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against LMI Aerospace, Inc. (“LMI Aerospace” or the “Company”) (Nasdaq:LMIA) in the United States District Court for the Eastern District of Missouri on behalf of current stock holders of LMI Aerospace, seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”).
On February 17, 2017, LMI and Sonaca announced that they had entered into a definitive merger agreement (the “Merger Agreement”) pursuant to which Sonaca will acquire all of the outstanding shares of common stock of LMI for $14.00 per share (the “Merger Consideration”), in cash (the “Proposed Transaction”). The Proposed Transaction is expected to close in mid-2017.
The Complaint alleges that the Proposed Transaction was approved by a conflicted Board, which stands to receive windfall financial benefits from the automatic vesting of restricted stock and stock options. The Complaint alleges that while the consideration to be received by LMI’s shareholders is inadequate, the Board and the Company’s executive management will profit substantially from the Proposed Transaction.
On October 13, 2016, LMI announced that it had delivered the first of its aileron and flap assemblies to Honda Aircraft Company (“Honda”), to be utilized in Honda’s first aircraft the Honda HA-420 HondaJet (“HondaJet”). The Complaint also alleges that one analyst that covers advances in aviation remarked that the HondaJet is a “game-changer for the business aviation market” and expects the jet to “foreshadow a wholesale change in the business aviation marketplace,” echoing what Honda and Toyota had done to the automobile industry in the 1970’s. By entering into the Proposed Transaction, however, the Complaint alleges that LMI stockholders will not be able to share in the Company’s success and profits.
The Complaint also alleges that Defendants have violated the Exchange Act by causing a materially incomplete and misleading preliminary proxy statement (the “Proxy”) to be filed with the U.S. Securities and Exchange Commission (“SEC”) on March 15, 2017. The Proxy recommends that LMI shareholders vote in favor of the Proposed Transaction whereby Merger Sub will merge with and into LMI, and become a wholly owned subsidiary of Sonaca.
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.
Please visit our website at http://www.gme-law.com for more information about the firm.