Whirlpool and spa maker Jacuzzi Brands said today that the company and each of its directors have been named as defendants in two purported stockholder class action lawsuits filed on Oct. 13, 2006 in Delaware. The suits allege the directors breached their fiduciary duties when they agreed to a proposed merger with a subsidiary of Apollo Management L.P. The complaints seek injunctive relief as well as damages.
Jacuzzi said it reviewed the complaints and believes the lawsuits are without merit, and intends to defend itself against the claims.
As APPLIANCE reported on October 11, Jacuzzi Brands, Inc. (West Palm Beach, Florida, U.S.) signed a definitive merger agreement, with affiliates of private equity firm Apollo Management will purchase Jacuzzi in a transaction valued at U.S. $1.25 billion and includes the assumption of outstanding debt of about U.S. $260 million, net of cash.
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