Another Stockholder Files Suit Against Orbital ATK Over Proposed Merger

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Orbital ATK, Inc. and its board of directors are facing a proposed class action lawsuit that claims they filed a misleading proxy statement in connection with a potential merger between Orbital and Northrop Grumman Corporation. From the complaint:

“Designed to convince stockholders to vote in favor of the Proposed Transaction, the Proxy is rendered misleading by the omission of critical information concerning the Company’s expected future value as a standalone entity as evidenced by the Company’s financial projections, the financial analysis underlying the fairness opinion provided by Citigroup Global Markets, Inc. (Citi), and the process ultimately leading to the Merger Agreement.”

The suit expands on this by noting that “key inputs and assumptions” behind the analyses of the company’s valuation were missing from the statement, along with details of Orbital’s financial projections. This information, the plaintiff argues, is necessary for stockholders to accurately assess the deal and decide whether they will vote in favor of the transaction.