CASES
The Student Loan Corporation (Connecticut Superior Court)
Summary of Case:
A securities class action has been filed against The Student Loan Corporation (Connecticut Superior Court) (STU) ("SLC" or the "Company") on behalf of all stockholders of The Student Loan Corporation. This case has been filed in the Connecticut Superior Court, Stamford- Norwalk District.
The claims arise out of the acquisition of shares of SLC by Discover Financial Services ("Discover"), as well as the sale of certain assets of SLC to, among others, Discover and Citigroup, Inc. ("Citigroup"), allegedly for grossly inadequate consideration and in breach of defendants' fiduciary duties. According to the complaint, Citigroup has control over SLC as it, inter alia, owns approximately 80% of the Company's outstanding common shares.
The complaint alleges that on September 17, 2010, it was announced that SLC and Discover have entered into a definitive agreement for Discover to acquire SLC, and thereby become the owner of its private student loan business as well as $4 billon of its private student loans, Separately and immediately prior to the transaction, (i) SLM Corporation will acquire from SLC $28 billion of securitized federal student loans and related assets and (ii) Citigroup will acquire from SLC certain federal and private student loans and other assets totaling $8.7 billion. Upon the closing of the transactions described above, shareholders of SLC will receive $30 per share.
The complaint further alleges that plaintiff and the other public stockholders of the Company's common stock are entitled to enjoin the Buyout Transaction, or alternatively, recover damages in the event the transaction is consummated. Allegedly, the Buyout Transaction's offer price of $30 per share to be paid to Class members is unconscionable and unfair and so grossly inadequate as to constitute a gross breach of trust committed by defendants against the public stockholders.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.