Openlane Investor Sues To Block $210M KAR Auction Deal

Law360, Wilmington (September 9, 2011, 8:21 PM EDT) -- An Openlane Inc. shareholder lodged a class action in Delaware state court Friday challenging the planned $210 million acquisition of the auto auctioneer by rival KAR Auction Services Inc., saying the deal stiffs shareholders and unduly rewards management.

Openlane’s directors breached their fiduciary duty to shareholders by agreeing to the deal at a paltry price, taking none of the usual steps to ensure value for investors, while securing continued employment for many executives and financial perks for the board, according to plaintiff William S. Treadway....
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