A class action complaint seeks to halt the acquisition of the company
Blue Nile shareholder Barbara L. Hale has filed a class action suit trying to block Bain Capital’s bid to acquire the e-tailer, Blue Nile said in a Jan. 24 filing with the Securities and Exchange Committee.
The suit, filed Jan. 13 in the Delaware Court of Chancery, asserts that the company’s proxy materials failed to disclose material information concerning its financial projections and analysis of similar transactions. The suit seeks an order blocking the merger, a finding that the board breached its fiduciary duties, and award of attorney’s fees and other expenses.
The filing said that while the board denies the allegations in the complaint, it has added a supplement to its definitive proxy statement “solely to alleviate the costs, risks, distraction, and uncertainties inherent in litigation and any potential delay of the proposed Merger.” The supplemental disclosures can be seen here.