Case 1:18-cv-02474-CCB Document 1 Filed 08/13/18 Page 1 of...

Case 1:18-cv-02474-CCB Document 1 Filed 08/13/18 of 15

IN 14 1 E: UNLTED STAT ES DISTRICT COU1RTFOR THF, DST RI C'T OF MARY LA N D

P A[. PAR E[A [.1.. ]ndiv idually 31d onBcha]r of AII Otheris i illarly Silm.L CASE NO.:NapIr I u 1 ii ~34 110,

('1.AS ACTION COMP.I I]

S JURY TRIA 1. D];MANIDI)

1C .1

MB FTNANCIAL, INC.00 West MadisOR SweetChicago, [I] i noi. 6 647

Serve on: The Corp'xation Jrus. Iicorporared-'405 Y'rk RoadSuhce 201Ii herviI1w Tnionium, Manand 21 093

}A V JL P. BO Li1.. 1WO( Wes MadiHrn Screil 1Chi XLE!O. [[jinois 6064)7

CLARLJS BRYAN DANiEL S800 We'L NMadiso SuetCticaio, Lliinuis 60607

MC H L. RJ RX('0 West !Yadisrn SE1-6e-eTCThica' 4 .. [Ilinois 60607

SL'NJL CAltuWI0 West Madisan Su'Cet 1ClhiLag, [I11rio1. 60607

CHARLES J. (iRiES900 West Iadiq4n S're'l 1Chica±o. I[inois 60607

,1AM-'S N. I ALLENEW10 West Madi son SWrLeT 1Chi cag. I [j i[o is 60607 1

THONIAS H. lARVEY90c} West Madison StrOe.Chicgo. illinois 60607


R1 'HARD j. JI.I .lS .M8(00 WCSL \fiad %ison Strcct

Chicag, LILi loi 60607

MARK A. HOPPER00 West Madsll SivetC'icap- [I ini's 6(67

KARIFl N .I. MA Y 1900Ws. Ma&isn S)r'VetChicago. Iflinois 60607

REN IZE ]OU}WRkW40 WVest Madiso51Sreel

Cli ic ,t. I 1L hi E.iLs 60607

and}

1I I" [ F [ER ) BANC(.)R 138 Fountain Square Plaza

C 1 ii n i., ()h i o 4526~-

(OMPLAINT FOR V4OLATIITONS OF THESECURTIES EXCHANGE ACT OF 1934


1I'aTILiffI by hi tudcrigned altwrneys. rbr (his cOTupluin1 against letendants. 3ILk -. s

upon personal kitwlcdgc with respecc to him&e-. and upun iriI(IrIn4LLQ.1 and bofief ba:cd Upon.

I0?u (r al ia.t 1 ivc-t '.E Inn 3 iOf c sEI I I)i L1 1 ), 11 UT dl] I CU 1 tons IlLf'i 1 a Ibi 10 *.1:

NATURE F THE ACTION

1- Thii actio.n Icnms from a proposed [JailaIiI1-irii);n",il on Mv L t. :u 8 (the

-'ruj01.'c.'J TimI-te I 'JLL1.. piLEsufLilt [0 W1i1MI LIH Einar i Ai. 1m. c-MB F inanCial" or the1

-CtIpay-) will be acquircJd by Fibih Third Bancorp 4-Fih Tbird--).

. OTI MHy 20. 2'0 t 8. iB I- inancial- ts BrdI mLI Diretnom The -'Board~~ o] 'tndtviuul

)cfciidants-) CaLJSetd [lie C rnpiiny to Cmtcr InOL an aQrecmtI 03nd pln 4 5 1-T (tiCT CMef ei

Agttc-nivnfj with Fifth Thijd. t UsUant [M tih 1LnTm t' the o NCTECT Agcern'n. I'l 11 it!r-.IET '.

COIplted. MB Finaiic[al stockkolderi ; ill receiv S5.4 in cash and t.45 0 sharicx ai [ilh TIi;rd

COmIm Siock for ke chhar. i' MB I'in(l'ciaI comn on stock thE own.

3 On Aii st _33, I d8. ftL dndnc Filed a pxoKy Statei nLro%' the

JTrtospectus-- wi1b he Ln itCd States Secuities ad TTLlM hnge Crmmiissij n ("SL -) in

con netion with 1hi PropusCd Transaction.

4. The Prosl.Mtus, A bih whduled a LockhoIdcT votc on tUe F1ropoCIe2 TIan.saCli 11

for Scplcmber I, 20 18 I r 5i nuit Ill ntOrMa9iOR with TMSpLlC[ !4 he 1)tposed I Ya.actOl1.

wliiLi r-nTKIcTh the Prospectus falNL arsd iri.lEatirng. Ac .vodingLyd'. pJaintiti atleg' h.r:iri thal

delerahrit.s vioiated Sections 14(a) and 2(0(a) 4f the Skttrities Exchange Acr oU L934 h1be --1934

Ac[~~) in ceiInecmini wi1 [z4 PTmTpcctius.

JI.IR SDICTION AND VENUE

T16is COUIrt has iurisdictioi ever ie clair wLeLId herein pursuant t Selini 27

of dwi t9-4 Act hcuLd1je thc claims asserwcd I1mJn arise under Sjijs 4 ).j and 20{) ol' th

2


ci the 1934 Acw btxausc the Caims a eriLW iwrUh aricE uidcr Seciu n 14(1) ctrd ?I)(ai oC 11e

I ')4 Act ald Ruie 1 4a-9.

6. Ihis Cour, ha5 r'isdiCd(on 0Ver dcf'Indnmts bUeauSC LUCIh dLefLIdflt iL ebirCT a

cLrpora[imn hial conducts bu'Mis' n |iwd maIntins c ~pcratix'ii ; ithin tils DiMtE e[. or is aU

3TIdIVIi riil With sutic Cite Iiinimin f t(5 wifli is Dis[JLi XM ns i ake ( exerise of

julisdiL'tiol by tb(L (uTI p miSsib0 Undoc [Taditional mli01S 0i C Ir pa ', aid substanliiaI jusdiC.

7. Vm i proper iiidc r 28 1.S.. 139(b) becmigie a siibstaiuial pI)r LTI 0F fih

m(n'aclitMIS and wn T ompJaiiied ofherei1 clccurnL\I in this Distrc.

PA RTi-'

8. PlaIntiV is. and IhaS bUer. ConitiUoi1IV tliroUIi)ul All tiunes rc;c1:ant lleircii, tle

owner of M BJLar1-i3ctal COMTlon fl&]l

9. DIcfcndaiu M B i, iandaU is | Mrv Imid C0rporai[lon uncd nll TI tL:n k IiCipal

xCCCLLijVe olces R:1 \ WCst Masoii Su [eet. Ch ca ., 1iil: W 1607. NB :jirani,.I CImmTInoQi1

stock is Lrd--d or . lic NasdaquiS UJIdeT 1b: 1.i61-r VmboI -NIBIJ.-

10. [.JUtndini. David P. BIolger ("''LIIr~~ i direcotr oC M8 Finanial.

I I. Defeiidant ( IwrWU Bryan DaiieL f'ani i ~ is ai J TZ r Lr fL M B Financ[al

12. [XIfndiit MitcltJLfl Fi'eer IFI eig-'e is ]>CsideiL C I ief ]XL!u ive Officc r

"CtEO"i. and a dircLIr oJ~MB 1inanolal.

13. Le)endamt Suinil G:arg (--arf") ;s a diiecwi oF [1 N rlR 1: cMI

14. Defendait CiurItUS J. ( irie -Gri vs-) s a director oL MR Finarc ia

15. Defrndant JLames N. jI alIknt -f [Ain'- IC" a directar of MB 1:ii1mcbal.

16. Defejida2 i :ii . Harv-y (I]H Ave.) is a diret:ir ( MB Finap c[al

17, Defend uit Richard J. Il I lnmcrkr f-HolmtroM-} ik a ;icgr tFMB ](inancI5aI.

4


I8. IDXend n i \fMak A. L loppe ["I-LoppC") i 1 direca ot M B Fin i.c]al,

19. DcfcnJani Kxai'n .[. MiNi.y c-M '- is a duecto: o \-I B [ir inciaI

20. --e)Wn 1knte Togher r"oser in dircclor oF MB FiniLTIi-Lia.

21. The dct ndants ittLtiii edL. in parapraphs 10 EhIOuui 20 are colcelLvelv referrd ?o

hcrein a, the '-r tvidual DcCendants.:

22. el'Endan Jr`h Third is an Ohjo cWIporati):1 v'iA is priJCipal X culi iVe nifics

]omi-ed at 38 Fountain Squar- E'Iuni. Cincinna-i. Olio 4526I. ifth IlTlrd is ile bank IIIldin

compan- 1 r 1¾iLth Third Bank. FKth [linL] ornmon stock is [jaded ciii lh¶ LdaqI- nder

the fic kcr s' in k -] TR.

CL ASS ACTION ALLY GATIONS

2. P lni nk ibl ri"M s 11l L:i I cii i as U ClaSs ac Lion on bhAl C 5 hi imsei C and the oL Ii Ci

PuLik '-ickhcldcrs o[ VIB Financial i 1 V''In.51-. EXCeUed Crorn Eh Cass HTC deerdanum

I11 L Wll du afli3erxun. Iirm, I rUst cororiado. oC 'thur en( it' related tor Li I UL wik QV

de erdai I.

24. TILIN ttJiQ|1 1S prOpCr]v -ilamdi lhit' WS u| claSs actio|i. The (.1i.s i, 51 flUMeroll

1hai Knguder 0F all neInb.es :-, i inprijcuie. As oF N'Luv 1 & 2018. here WCI' appNxinmai3lv

84.077.597 .hiart'-s J MB Financial e10ion liock outstanding. heMd by hundrcds.if not

J[i-i.st. cC indivi.uaLs an tiiUZs sCaitCTCd LhT l~gLhiLLE the COUTiI.Tv.

25. 'ucstkincis oi law artd I:L!I HRc CO)L1hfLO t th laV,. :l l1dirLg_ am1L. other. (0

whether del'kndait:i % kolkwd the 1934 Ac: andi iii. whether defedaius w ill irrepurably harm

plainifl and rht- othcr memberS of the (l.is i~ dc~ndan' eonducr cornpilained ol' herein.

L4 mL i CTar

24. iiniff H~ comInit-Oe Eti pni.SetAII Tin ths aICd[On1. 1atLi] L3. eiNd L X~ mnpoent

5


L-3sL1 xperiec:cd in loLfgathM- A1 hi.j tuLLITc. J'lai:T; WTX: cILii-M IeX typi'a o 1IU 1L3ims nFt-nh

3Il IL i IirerS o thUe Cluss ILni plaindi. Jimx ' s5ac IIacr1l J5 $ c OtI2 r rcrlibrs of 'l le

C!L. Accodijigly, pliirnGifl i~ an adckqiiaC repeseilativu of thC Oasq and will fa.rk;, amt

adequiiely prKtcct the iIl[erL51h oEthe CJass.

27. JIhC pThMeCL[ifLn oi fcp'ratL atdiusi b% indkidUal JnfMrhcr Of the CAsA would

cic2al th1 risk o' inconsistcdt or varinL ndjudaitCa'oi that woi-dd Lsiilish incompariblv

sL;.t1.rd(. 1 CoFodUct F''r dC[CtL1aL!L or ati LJ;HOIISl 31 Vm WUId, as a j''clicil 1attcn. be

disposiuie of .ie i!c'est ci iwdiviiua inthiombers ir thc Ciass who rc ]Bot piie3s'; lo ILC

adjtukliauons o'v w u Id subsantatIv irnp.r o irpcdI i Il.¶dc ii non -pUTLy ClaS inmcrnTs' abi'iLt\ to

p.}rowLe1 [hr.1T intcTOeSKG.

2g. DLurmcntnt Hvit wd or nefused i HE on grounLds 'neri l]k app]Li cablI 1.0 thC

C Iass . a wN-ho1A. and are cai3 jg :njur wo the cru ire CIuss. There Crbr, Iintt[ Vnjnc IVe rlil on

bh 1lf ol 'the Ck Ns EN appr pria~e.

SIUBSTANTIVE ALEGATi(INS

Backgrouud of the C ompany ad the Proposed Transvcdon

29. .MI Jimt3ncal is the Chi.gQ-based hlding LcIIIp1y for NlB Firinncl] ank

which haS -pproxirmately $20 billio iL- asS-u 3ld r mrc than One litndrcd year luimry olr

bi1di1 I'LQ31011Ailips with middln-mnark i cuipa-nics ad illi %1ils.

30. [he C( ni> oFlTs a fulL ige (1 ptwv'. rttu3 financial .'ltLtiens and -.e expertic

anmd eXperiLenL f bankchi vli%0 uT Jticuscd on their cLimiK, sucCcss.

3 L. On May 20. 201 X. ie [ndividua[ JIc'er.daras caused the Cornpanv It'% cter iu(

ihe Mcrigc Agreerncni.

i. Parniant [ i ithe :erm of diL Mer-er AgrcJnjt. if the merger completd. MB

Fiiuinciai sIMtkhdcr2 will icceive 55 54 iM casl anJ I .450 sharcs of FHl rh ]hiTd coninion s[ock


for eac share M XiR Fin iainl CoMllOn stoCk cI.) owr.

A) Aco1uio [0 [lie rurs reI anncini 1he Proposed kLansacluil:

JI ih Third B.ncorp {N sdaq: C [[ k: www..coii) and MB FiILcLuL In1.(NaWdaq: IT' BFI WW\ .[ibtII-ninucial-o ) jni ntIly -antounccd today the .i-nir;.g o aIdeiniLive merg-tr gTemcnl under whikh MB Finanicial. inc, (--M3 Financ2af')will mergC widl ]1 II; Ihird Rlricci rp ('lk ihin t a [J-arsacitiR val, id citapprUxiiut y I4.- bi]lon. Approximat&y %j peirrii fihe cern4dcmtion wl bLin stock with the rcst i casli.

Baszd or die Chsinw prie o'~ Filfth [hird's ctniion shiarei n \. y I & 20 &ulrtiirmciii xharehmrs of MB inancia[ will rcceive $54.20 ol tta[ Considcratikx,COnsissiunp or 1 .45 -iar's (if I'jilh iRimT COMTTlOfl sUIck and S5-54 in cash i- :.ch

share of Ni . lIi indaM QUrifoll 5wCk. [Se Coiuideralon imnpli|; N PrrTiuin OtapproKinmlIlV 24 percent t MB Firaiial-. claoxi ng xhLr price on May t S. 20 19

ID CO]iUflC[iDi willi. ib: cl J ing i- thC tTarjsactioji. ['iAl 1i1 ibLi,. A MBFa:caL lkarti v [ rkcOUS aiC CNpCLCd 10 uL lhe Fifth 1lTrd BanCcrp

1 hiard,

Cl1ica-o-b ed NiB Fiuntila] is the ltolding Cnmna' ftoT NIB ]'inancia] Bank..A MB 1htiancial h as al)prL)XifiIllY .0) billion il aSCts wmth a his[crv ol

suCCEssftlly Servirig lhe (hiclgQ rnukct for o' O ;ears. MR lH'mcil i5 wellrecogrLii.d s a iJcadcr in serving rniddle-markei LtL koflCS,. iOr its s(Joflng dprSitIhidrhic,. and fOT ic cusqomer ccintric crcTIc culture.

lie imtrqLr will rcsult in a teta- thiCago deposiL imnik(i 5kI'h Of @1 6.pceitr-inkina the combined ceoipwi ICir.li Il lvta] deposits and Seco:nd ill egtimnadretail dCposits aming [i ntuirly 200 bankE in thc markctphce. Adlilionklly. tltC

C(ilIbInelt coim'rimy will haCv a 20 |>reiJit Shart' onuiiiflc i|.'ikct rcladionsltIH LiUii C g, rm1kinL it socond. . . .

Tbc .RmLsac(Lofl .S LIp d in red ice [1ifIh hirds reqular-rv :(1imn ekqILYr icr 1 ({ FF1) Tito Lb LppFoNintatly 45 basi PLiirt. [Tic r F orinu tan-iLih

UCJmImlflon equity (C tai0gi bt. a s (ICr: 31LO of the Coibined e ri % 1 pro 'Med[b he X. erLnli ut closiIg

-ilih Ihird intit&nds io co)iple(o ii 2017 CCAR buyback plan eY JcitLLiirig 1-tW S36 I ni lii ck i 1 q1,. rL5 c l Ofl commltof sock Letow ihr e tgiaui1 of thc nroxy

A) I L LLIL1 in corTcet1iot wi th tlie MB linmni.a[ sharcltoldcr vc ciii [ih:Lrns k'ionI. and. subject 10 irLeulal, y Ia ppr nTilk. mtI repttrClase add~~l rw l sh'riaLRE [li0 'Ne. Ikbe irig aTlnd Lintotint o( EiS r'p'urChasc acivily i: subatcL to

rmraket conditions and applicabte secuxilries ]aws.

Ili tiacetiow j 10 1I|C i isfaciot 0 f al cumd, ry CIOsinu cQxldi[iois.LiIclI LIll g Ii. g I[atOTV aprovals s well |3s %' C!ppIoval o NB Ejnani j M

7


shal1? ciders.

The Prosptc Iu Orumit Material [ntfrmation. R enderiing It False ani Misleading

3' 4. I'E3id.Hni iilCd the PirospeMu niLh ik! SEXC inoeclisn wish the PrOpOSd

Tran"' Li10in

3. flie PNspecris i mit5 material JilfbniIlig1 with Tspe" [m ihe Prnpx)5d

IranisactioL. Wlich renders the PrusneL1Leb Nkdse Xxd niS[eadi0g.

36 First. the [tTs:Iu l onl nmtejiM inbn i-tation rcgading dIie C(inpar's and

j1t [ J1WIrd'N IiTI l4YI];] pro)ect tt'O ll.S ;.Li Wis t he analyse ; perITIned by the C (opan\0 x i [Inan c I

advisor ii Ct'1.lmiIn witkl the Pro1posed Tri:auoil. Sandler OKeill! & Paftners. I.'.

k.-SanIdler--1.

'7. With reajp'C[t rohe (cimpny's Iir.a-ui-ul projuctinns, thC E3 Cu Iiiis 1':'

dieki Ihe Cvrmpanv's pro JeCtionm -Or yvars 2026 [hirouh 2('1~. The ProspecLs rov iiLLs ilhao.

-- IIn preparin8 ts arLwIyes5. SandLCr (YNe':IL used in I rnl fInancial proiCiLin5 f,r MB FinucWiWd

fOr . c years coding [eLeIfTiber 3 1, 20] 8 tIroi ,11J JeeTI .bItbr 31. 21)22. 3S ilidud bL the reguor

inanapniellt D MB Financial? NV ever, the PIrospc~Ms o1l1 di c14.Ws ceitain piojeted

finanCial illfonii;w. oniv tox years 21)18 ard 2~)I w ),

38. With ICpQCt 10 -iii J Tird'\ Ii-n rial PTj CCL1031- '[LL Prospec1US j MIt) disc Iu

the ~miedian aiiIlvi euri;nR i pCe siare estirciicS POr Fifth ThirJ fur ihe ;ears end io

I)Ni.lob-cr 31.. 2)] 8 t]Junuh IL'Thn-ber 31. 2020 and I[]ie CNimalcd long. -Zenn ann earnijnIs

i2i II T rC hITe years [lfcycatk r. :1 pM Idel m '01C ten iir r1IaRgemetN 43' M 3 1irniiI, a

wCl as [diej utnlln'1alLNI dividend payout ato aridL Llinl LtCd share buyKk ra Ls as pumX Ided by

ille wiikir manage il'r uP" Fit jh Third.-

30. WIfli respjct 1o Sind;ler's NCt Pkesent Value Anuysis for MB IirlnwiW, the

9


clst:..1 tils [( dcJ.<S- (I) flie ircenarL tinaiirkl p:-cjeaiD. [u M13 FinaiiiciaIl cr tie ycsars

endin1g I)iciubc r .3 71 IS trough [)ecemhei 31, 202.2 a.s prnvidcd by 111: wenitim rnan3emnCnt

il MB Iirinc]i: H) [hc OcmfnaI \ii 1F M 3 iWn.nDIa conm-in stek a( Dcebw 3. :

4ii) Sandlev-- kLis 'r rappl ir price 0 2022 caLiinglS mrnItiplks rungin- t'rhm 14.0\ to 1.'x

and rnuOtip[es n[' [cccnber 3 1 2022 w uyiib I 6-wvk va[Ue rwlgLrnu LronM 200% c0 %7 %-, 11d ':iV

[1e i riplL's id a3suinpLiis Endrlying the djcoiint rates rang L 0 H.'Vn to [ ] %

40. WiL repjil 10 Sandler~h N;1i Prcseni Vuluc Analevis: r Fliili 1iTd, the

P'\isputxtus fikw KI.SC OS'. (I 1 I mediani an~jlvst Carrdiig p.r sia:c est iiace tbr I:fih Third

fri tIlie vvars cndding DeLember 31 20] Lbtrougn lhucmbcr 31. 2020 and flie uIimated aIhnu

Carriuri gwTiwtt ae Jir Fifth Third hrT ihC year. ending Deoern FuT 31. Y021 art lkcemnL 31

2.022. as prLviied by A 1ITinnca, seniT nimnagCrncil; (iii thc cstLJunatlt &ivitdond naynl ratio

and ri'niatcd silare bitback ra[iios ks providui by Fifth THirTi %nIr ril nge.nCnt (iiis Jhi

1tCnl-GYM vltiic of Firih Third cornfllirk 6. uk at J)ecr1Tber 3 t. 2022; 6vi Sandlrs basis fr:

klpp yin, pricto 2Uo c( Loam pns ruIip sanging fr)Tii I3.GX [o 1 6.O aid riulil]cs 1f

I|2C~ber 3 t. 2022 tanble value honk 'lig xaji rig iTbm t~5n 1k '375%: and [v) die irupul ild

assunipilOrs LidCrIyin'g ihe dtscounl r1l1i 1TanIDnL runi 8.0% [I 11 r L%

4kl. Wii. ~Tpcc1 (0 SandLci's PU) Errila Aiasis. the PTOspeatts il (c JIIxL: d')

th median kinalyst 2amiiigs pci xbirost naies fur Fifth [bird 1(r the ynrTS emidii,

[}cCm be' 1. 2 08 dirt Lgh ])ccC1iu'er I,. 2020. and i e ,stilna[t'd 1cIrg-LCTin allrULj4] CUtTLiSliS

t"irowdh rate hlir FiGm Third for I'x yeaXs therea'cr aS piOVid(l r-I iL% S lit'T rnanajemenl of MB

JFiliiinc`4; (i) the LN'ii-11tkdCJ 4.den,% paYuLLt ] I LI( anLi CSIfma[eO XtRhae uxbdk TbJI ios as pI xkdkd

by Fift Third SLnik'Jlr mavUuiument iii) (11L ledii ucoisznsu ailyl[vs eamiiniigS pCr sharC

CStire. LrOr MIB inJicia] for the ve'. d I-nd ig DCCenlber 31 . 20 ]g and l)ccIIlr 3]. N) I ' .d


[1ie n:t Imatcd Jlng-icnii3 lu luings grTlwth rate 1iw MB Finmaiil F0r the yCUTS dleatrer -s

prtwidcd my MB Filancial si.iOr Inalliagv-li'nt: and ( .1ju aSUL 1l(p(i0ns Tclattng 10 transaulT

expenses. pituLhr.e ac2niring a-diutm-nrnTs. and Lc1I avin s. as prnvided 1 l Fith lJrd sEliI r

42. Wii spC [ S;:ONR.dr "C C]TMptrkbIc (: tn]Nnv Ana4qs. he P i- speCu i t[k-6 1t

disco e ih inldiviJual nulipZN and hinane:ai niel riis Iur tkle cWrnpwnic observed by Saidler 1n

ibr -lul y 5s.

43. %itIi -SIpuct Lo Sii).cIILr9S Analvsis F PTUCCdenlt Ir-IjmSaCti'ns, ihe Prosiect u. fLhL

to d:c In(1e thC Ind'ncdiaI [Ul t1Ipes a(md financial 1elrcs for the [nr-nactioias ohserved bk Suridler

in the dialy Vis.

44. Thc disciksure O& projected Iinicia] infon iiHjon is na riaW HCCaLISe it prkvi iLC

s[ikJ]i4Edqr- with a bnxi5 to project thkt RUC kinn9cial lxrormwcK Of a COM flpuJ11). aia a]Lw%

stckhuldfrs Io b-tw.[[ Uinr1s nd die Iiiand] aniatysws periTrmed by il ecoinpanr- Iir-cial

adviSur ill Slt-l]-l-r(! (its ta:Ils'1 OpiMOn- \-lOWLWCVLe. WI't:Ii u bna.k-fe cndEscMCII LF the

f'iTrvss Of a LntrLUOiOl IS [is Iu.[ed LO sIxalaehf'ItLeir 11C Vaa[iLLE MEcIbIOd -- ed LO IarivL al tha

opi on ;i 'A Le1 aS the key inputs and rATI ! o tii[I.niialk v:iIueE gctnira1xcI by those ;mwI ysci nius

aLkU be K:'rlV dihClkM.d.

4. Seojid. die IR1RspctLs fail. o &th[OSC I'ti-!T th C CNII[ILY ClltCUL2J iflil MW

liidiscklosure a renc; TfglT Ca [ . cOmtnined starsti|l. ndi -dopt ask. doL3i wayc' I)L)iTIns

1Lhl Jrc or wer' pvC~enLtInm t-e C',JftcrpaFL-t't Fu~in submi.nilliii' 6ipmor nlki's (i ac-qlLiJ. ON

46. Wilxou[ [his inFormadrion,toc deis li:;1 have the rnixken bcbeffthal, i 1es

povvn.IaLI EitvrtCd parjlis ijched to conie CrwaTrd wth i -uporiir orlr, Ihey are 1' et

10


,10erfi111| [cI :tL wCn 1.1 tact LIg 0VT T C wre cQll tractua[¾, % pro[bed i dOInfJ so.

47. Third the [ Impes cii. rnEt matcria- inirnai n reuading potential eonrlic f

inteiesE of Saidlkr.

48. The PIrSFp)tm Ckih Eo disclose di.0 2iLLO-UTII ti fompCsatens ' Saor lu.'r 1eLf-C LCI |o

[he pas. sericcs it provided mi MB I1inanci i.

49. [lW. disclosuc Of irlvet-en hkikT conipJimiO31 aLL Nll pc tCIl(ial CtjiiljiC1 ',

;.'|tiTcd diLv 1o (li2 CtTIl.LI Txc.Ie played b'. iO:W's[JrLw TIL '-LnkS in i[w evaL'miiin. |-"c ai 0i] .

'e lci' ixIn. a-d i n p rn-[aion Af 5trWZgic akcWm1 tVes.

50. Thie .mission. o [lie abovc-rt'l.rccd inatcral bAff3ra[iMnT rwidcif thzE 1h sp-ctu.3

al5c a32d 1113iIL adiTIg. ijljidLn.. A'?U aba, the 6ol]Uw ng sections t' the PiSpcctUIS: j

Rickg7uind of (le r.i ir, {ii. R mmnndato o the M FinmminHI Iiard of I iIcFrs Hnd L1c

Keasonr s iOr the Meigi;. (iLi) Ccraiii M. FimWmiai] PIOspeciVC l:ilian1cihl 1nIlrlaion: and iv)

Opiniv ot MB J1ilia21cial', inkircil Adv isor.

- The abivc-TelercvnCcd omitted infOrtlaliQ1TI ii dbse|OSCd. Iould .ainilkcJnt1% ajie

ile 1L11 rnli Wntornatroli vn-a clIhlue Io 1i[ Cmpa ciwd er

COUNT I

(:im for Viniation of Sevtiun 14(a) of the 1934 Aet and Rule 14a-9 I-r(PmulgptedThCreundki Against the individual Dfkndants and N0B IinanciaI

52 P1aintiff repeots mid reWaIeus thic prccedi:Ig aIL¶Hions us i Fi[]v Sei fmkTh lirein.

.9. The Individal F)t1itDras dcnSin1mIteJ the PaW anid mnis[caditag tnins ugsi,

wli h conitained sixternints 1 1t 5i Iiolt 1.imi 'ii 'al I 4ifa) of the 1934 Ac und Rt[c t4a-St 1n

Iiuhi of the crL'eunsxancl tndcr whicli they w ie rii:i. mittcd o state rna[erial kIic15 nccCssas-

10 1iit'ke [i1C ,LaLw-ncts thereOi 1|:01 riatrnWIly gl|S. or lubIseadin' . M Financial is ijah as ibe

tSSU'[e V Of l'se I lI f-l.f L .

1 1


54. ]iP Pmptus was i'-wred. rcvtCwed. ind/or di'air'miated b} (lie I aW id I

D Ir-edaI5, Lv rii-LC ot []heir -o '.itilons Wiii.I Lle (ompai. tbt' ndividiiai J)L2EC rLm weLe

awi'e of this intbrnaitn Ind theJ- Liuly to d;sc htx inlhrmmtriit in th PUSpCtI.V.

""- l! [1divLdud ILefCTIdants en'- X, le! nepJens in lin. [he 1'r..5pcetuS %1it3

1lw&w mCrially FalsC and ]nl enkT., Et-aLnCi[.

51. [ 4ii ornissionL aLa iul and 1 i leadiiw silenCjt-s ii 1ht 'rPosMetUx ;jTe ral

in that a reimonable soklikhlddcr will cu[idY'ler tlicin iinM r111-;11rint in decidiiw!; hiow (0 \t, mL liO

FTrposed Tia- ciiNiL In add Litn i reasonable irivesior will \,ew a fj Il and acLuTatW disC [osuIv

a- significantly aleLiig die itt] rix olF inlorimaiwn made avaiLal ill the Lr]nsfls and in

other int rrnmion reasorna¼b avilable to .inck.o1ldcrs.

7. The Prospectus till CeSC[ijal link il Camsijisig FSlifL]ft and [lie Xi an -s

S1L1ckholders to apjprove the Proposd Trlrisac tion.

5 . L rOTI o thc loxWguin. de'endans vibied $ec ion ] 4':a) ciic ]9 34 Act arkd

R ule 1 4a-9 prImTurn[ aIed 1hei rUTid er.

59. 1kewiusc of tI i1lse and misie adlin statements in he [Pro pectit F]nintifl-:nd tjie

C lass a. I5realened witii Ireparablc lai ili

COUNT [I

Claim for Violatiro of Section 20(a) 1F the 1934 AutAgaiiiit Ihe Individual Ddfvndants and I-ilIh Third

40. 1Xiinli[f repeats; ai i realiges the preedClng al le,±auoris is it' Fully 1 %L2 rth 1 rAi.

6. I lie I Eid i Vid cial De feiiduii L and )tli I lii rd acted as LOuiml rol lini a persons kF IB

Financial wiChin ihe niar'in- oF SectiR 2Jta) L Ihe ] 934 Act aL alleged Jerein. By Iirltie of

ileiT posilions as LAllers andtOr direul'rs Of VIB FlI2ISEial and paricipiloin in aidir aiwareness

of he (Ciompally\ - pLi-a1Lon:u andwir iniimtc knoio tetlge of the Ea. se m ale mnts CO0l uin l in th

12


Prspr i.us, ihey had the pmiwer 10 JIiIILL221CL! :nI cOtlmroi and dil InlCflce nd i ImLrOL dule o

iildjjr Lt1% . Lhe deciStOn making Ol'the C'ni*My. iincldi"ig [lie crnl]1t and dist.:*11ioJ1 of the

Va L 'is IueREell[s thaIL plaiaitff Contunds ar lsetLe and mniIeadir.

62. Each of te. lndividual Delendaruirs and Fitth Third aS priided widi Dr or d

uriimi ed acees 10i copies ur k4L Prospectus alIeLud by plairi t bC misadina prior to a9dIT

.'hfwt]V after ihese staterme1a wrc istued and hiad the ability 10 prevCt [1142 issunLcc of lhe

s~a~en-en1u Or C L.Lie' rLhTn 1k he Cor 'e CEt .

63. In parealar, each ol' the nLijidivmiLjl Jetendanis had diitct Lnd supeixii

involvzncft in 1he day-to day cicratm os of die ( 'Lflpkiiy. and, [ierefere. is pieumd 1( have

liid i I V pow.VCer [1 conirol a d mfltienc|;' (-iC p0ilar1 iun.NoC1ioiS urir g rie to the 10 i|k] Im a1 S

a[ICed lerinT1. Tind CXe.i--CLt ihe s1anC. i he PTs-pCCtuS CO1Irt. chil Lthaninui V LUUCXnd1[iL'

0f the [ndkii1l Dfcndamis 14) tipprovC the Proposed Transati&n They vxtrU thuNs direUCIl

-11%D1l%;d in thC makirig o(f the PrOS114 L1

64. Fifih Tisird ilso had dmnti supCniLSOr} contrOl GVUr tile Uiltiposilitl of I hL

PrFsp4m[.L ar:Ld tl- i. 1oima[ i On disclos1d iLeieiii. s CI US the inkrrain tha[i W If 0mi(ted

andtor misrpresenled in the 1rospeeiuN.

> ~13y kirtue of 1he lhwgoiig the Jridividual Detentwrt and i kh '1hird viokaed

Megli1on 20(a11fr he i934 ACE.

66. As sei tbrth kibiVC. 11C Individual Dcfenda(s and Fifth I1hird had (lie ahiliE v5

eeCreise C4Mlii) I QVCj ad did contLrl a peS0n c r pcT rGs D ito have .tch V0oLatcd SL!t iOn L4fj

cr K. 94 A c and R1 IU 1 4-L. - 1iheir acLs and in iSsons LS aI eed herein. ny virUiw oF treL

nc-iHOni as codling pesrtns these dclinuntd S arc [la Ic pierU-Sa nfft to cin EL Li0)7 oC the 0 kI l4

Act. M a direct amti proinate ie-%i of dctendaitK c1Tndii plainii IF and the (tas1 ATC

13


1krcatcned u ii i rreparah I I arni

PRAYER FOR RELIF

WHER EFORE, platntiff pray for judgmerta z-nd rIetd' ai 'bi|owz;

A. Pre[imitiail) mid permlaerilly C [!I' dclIndants ajid all pCuSon)fS aC11i. I

Ccne- w.h ilic]n h\'ri proccedhl] w:1n. cu.nsunirn @"maii. ol r dcosnl ,]g the rIIwo9cd IrarsCuti0:

3. Iln diC c1'00l duL.'rndts c ciii .ir-nitikLe thc Jhtlj|m'S|-d Transac~icITI, R-CMiti]1 Oi ndl

ir.g aside or aw:irding ULC-ENSL r damatcs

C. [rcaing [i' 1idivldJ :D'elLnLs to dissemilvite a 1ni'ij-i iL dila d:OUx 1itll

Q:lft*Lilr: am; UiiLTIL StItCeieI[x cit malcial. fac[ il tha[ states all ntcria [aLct cLiuircd ii -I or

iie."csa r Lornal,.t he sI.atCLIenIs .TiI jl Wd []dle-- rLi mI skadiiz

1). Clalirig ;lt dCleildariL[-'- v-iled SeCenSM . I4(a) 14f L) 2i(a of lie 1954 ACL as

wcl as Rult' Iv-9 po)iniIlg|-i d thceunder:

IL. AMLrd]Iig plaihitW:I d.Iv osl t |.- 1 ici. Ln1CILLdii4 rctmOOiabLt allhWaTc fOr

1'airlti i a t .0niO arid 'n pwT) fes: and

E:. Grcuitirg sxuh other and furl her rc[ic[ as tlis Cciurt ia deew jIL,. aind poper.

JURY DFiANI)

PlairiilFTleiCCJ'utl) raLuets a trial by jLry ciii FLl [ssuei u trilble.

I).td: Auusli 13 2017 GOLID AN & MINTON, P.C.

IS.-: .__ 8 _ _ __ _ _ _

ThLonI s .1. M` 1 i I O:1 Ihr Nio. 033701.16% C'Fpp0r Mill Rd.. Slike 20 1Batiniore. Ml 2[21 141 0} 7SX3-7575

1 n tLn Ti:C IarirLaI tyl .ega[COMr

A 'rcI. 1''. /0- Iu If'i/'

14


OF COUNSEL:

R]GIODSKY & LONG, PA.3J J4Iware A% t2rnut, LuiizC L220WiliIgn, DT I Q81)1f 3021 295-5310

RM LAW, P.C.05.5 Westdakes }ra.. SDli, 3J4

Bcrwn. PA 19312(484) .24-6800

I -

Case 1:18-cv-02474-CCB Document 1 Filed 08/13/18 Page 1 of...

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Transcript of Case 1:18-cv-02474-CCB Document 1 Filed 08/13/18 Page 1 of...