Cybex agrees to pay $1.8M to settle suit
Medway-based fitness equipment manufacturer Cybex International has reached a $1.8 million settlement of a class action lawsuit concerning the handling of its “going private” transaction completed in February 2013.
The lawsuit, filed in a low-level Manhattan court , alleged that Cybex breached its fiduciary obligations to the company's shareholders by entering into a plan under which all of the company's outstanding stock held by public shareholders would be converted into $2.55 per share.
The lawsuit charges that the price being offered to shareholders was too low, and that Cybex had not looked at offers from other potential buyers.
The court is scheduled to hold a settlement hearing July 1, and if the settlement is approved, the $1.8 million will be placed in a trust for distribution by the plaintiffs’ attorney.
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