Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.
Compliance December 28, 2012
Pension Fund Sues NYSE Euronext
A pension fund is leading a class-action lawsuit against NYSE Euronext.
Reported by Jay Polansky
The New Jersey Carpenters Pension Fund contends that NYSE Euronext and the suit’s other defendants breached their fiduciary duties and due care in the $8.2 billion proposed sale of NYSE to IntercontinentalExchange Inc.
The pension fund claims the deal would undervalue the exchange’s stock.
“The buyout is the product of a flawed process designed to ensure the sale of NYSE Euronext to ICE on terms preferential to ICE and designed to benefit NYSE Euronext’s insiders,” the pension fund said in its complaint, filed Friday in the Supreme Court of the State of New York.
The fund also claims the defendants hired financial advisers who were professionally and financially tied to them.
NYSE Euronext Shareholder Samuel Cohen also filed a proposed class action Friday over the proposed deal in the Delaware Chancery Court. The New Jersey Carpenters Pension Fund’s complaint is available here.