Tarrant Apparel Group management defends class action seeking to enjoin going private transaction
Clients Sunrise Acquisition Company, LLC
Jones Day represented Gerard Guez, Todd Kay, Patrick Chow, Sunrise Acquisition Company, LLC and Sunrise Merger Company in a shareholder class action which sought to enjoin their acquisition of Tarrant Apparel Group. In the complaint, plaintiff sought to enjoin the transaction, alleging that: (i) that the Directors breached their fiduciary duties to the class by agreeing to sell Tarrant using an allegedly unfair process, resulting in an allegedly unfair price; (ii) that the individual defendants breached their fiduciary duties of disclosure; and (iii) that Tarrant and the Sunrise Entities aided and abetted in these breaches of fiduciary duty. After plaintiffs withdrew their motion for expedited discovery, the merger closed, and a proposed settlement was submitted to the Court for its approval.
McMichael v. Tarrant Apparel Group, Inc., Lead Case No. BC 412320 (L.A. County Super. Ct. filed Apr. 22, 2009)