Investor Says Equus Board Diluted Shares To Seize Control

Law360, Houston (August 21, 2012, 8:06 PM EDT) -- The largest individual shareholder in Equus Total Return Inc. launched a suit Friday in Texas state court, alleging that the company’s board of directors diluted her shares in the private equity firm in a bid to grasp control.

Paula Douglass claims the Equus board of directors traded nearly 2 million new shares of stock in exchange for bonds issued by a failing German real estate company, causing financial losses and reducing the voting power of her shares.

“The directors knew that Equus shareholders would never receive...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.