Debt Firm's Owners Sued Over Alleged Control Gambit

Law360 (November 8, 2019, 8:07 PM EST) -- Asta Funding Inc.’s controlling stakeholders have been hit with a derivative suit in Delaware Chancery Court claiming they drained the company’s cash in a gambit to seize control and keep an activist hedge fund investor at bay.

In a partially redacted complaint filed Monday and unsealed Thursday, shareholder Daniel Litten targeted Asta Chairman and CEO Gary Stern and his son, Ricky Stern, for their $55 million purchase of shares held by Mangrove Partners, which had sought to probe the New Jersey-based company’s internal controls and install independent board members. The Sterns then profited from an unusual special dividend they declared after...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!