WILMINGTON, Del., Nov. 26, 2014 (GLOBE NEWSWIRE) -- Andrews & Springer LLC, a boutique securities class action law firm focused on representing shareholders nationwide, announces that it has filed a securities class action lawsuit on behalf of legacy shareholders of Paulson Capital Corp. (now referred to as VBI Vaccines, Inc. ("VBI") (Nasdaq:VBIV) who held shares on October 11, 2013 and were eligible to vote at the Company's Annual Meeting of Shareholders held on November 8, 2013. This lawsuit was filed in the United States District Court, Southern District of New York, Case No. 14-cv-9435.
If you held shares of Paulson Capital Corp. on October 11, 2013 and would like to join the class action, please visit our website or contact Craig J. Springer, Esq. at cspringer@andrewsspringer.com, or call toll free at 1-800-423-6013. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today (no later than January 26, 2015).
NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. YOU MAY RETAIN COUNSEL OF YOUR CHOICE.
Paulson Capital Corp. ("PCC") was once a publicly-traded financial services holding company that operated through its sole subsidiary Paulson Investment Company ("PIC"). Established by president Chester L.F. Paulson in 1970, PIC was one of the largest independent brokerage firms in the Pacific Northwest.
According to the lawsuit, PCC issued materially false and misleading information to investors. On October 18, 2013, the Company filed a Definitive Proxy Statement on Schedule 14A (the "October Proxy Statement) with the U.S. Securities and Exchange Commission (the "SEC") and solicited votes from shareholders necessary to approve a certain restructuring transaction (the "Restructuring Transaction"). Among other things, the October Proxy Statement asked PCC shareholders who held shares as of October 11, 2013 ("Legacy Shareholders") to vote on a transaction that would, among other things, spin off certain legacy assets of PCC and PIC into a Liquidating Trust (the "Liquidating Trust") for the benefit of Legacy Shareholders. The October Proxy Statement set October 11, 2013 as the Record Date for a shareholder meeting that was scheduled to take place on November 8, 2013. PCC represented to Legacy Shareholders that the Trust Assets included, among other things, a 25% equity interest in PIC, underwriter warrants, trading and investment securities, cash, accounts receivable and an insurance policy on the life of Chester L.F. Paulson, the founder of PIC. Collectively, the Trust Assets were valued at approximately $16.6 million. Legacy Shareholders overwhelmingly voted in favor of the Restructuring Transaction and the formation of the Liquidating Trust at the meeting of shareholders held on November 8, 2013.
Unbeknownst to Legacy Shareholders, PCC did not create the Liquidating Trust until on or about July 25, 2014, nearly nine months after issuing the October Proxy Statement. Finally on August 8, 2014, PCC's successor, VBI, disclosed in a 10-Q filing with the SEC that the Liquidating Trust was formed with assets "valued at approximately $9.8 million." The August 10-Q filing not only discloses the creation of the Liquidating Trust but also discloses the ownership interests in PIC. Contrary to the representations in the October Proxy Statement, the Liquidating Trust's 25% interest in PIC appears to have been completely eliminated.
As a result of PCC's omissions and misleading statements, a class action has been filed. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today (no later than January 26, 2015).
Andrews & Springer is a boutique securities class action law firm representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty or corporate misconduct. Having formerly defended some of the largest financial institutions in the world, our founding members use their valuable knowledge, experience, and superior skill for the sole purpose of achieving positive results for investors. For more information please visit our website at www.andrewsspringer.com.