Paradise Wire & Cable Defined Benefit Pension Plan v. Weil, No. 18-1483 (4th Cir. 2019)Annotate this Case
After the merger of RCA and AFIN, RCA shareholders filed suit alleging that the proxy statement was false and misleading under federal securities laws. In this case, the shareholders alleged that the proxy statements and omissions regarding (A) the AFIN NAV; (B) the sale of the Merrill Lynch properties; (C) SunTrust Bank; and (D) the AFIN Standalone Projections were materially misleading.
The Fourth Circuit affirmed the district court's dismissal of the claims, holding that the statements the shareholders complained of were not false or misleading and the alleged omissions were addressed by narrowly tailored warning language.