Cabela's Hit with Securities Lawsuit Over Proposed Merger

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Cabela’s Incorporated and its board of directors are facing a proposed class action lawsuit from a stockholder who claims he and other investors were misled by the company’s proxy statement, which was issued in connection with a merger between Cabela’s and Bass Pro Group, LLC. According to the complaint, the proxy statement omitted necessary information regarding “(i) the process that resulted in the Proposed Transaction and the conflicts of interest infecting it, (ii) the financial analysis conducted by the Company’s financial advisor, Guggenheim Securities, LLC (‘Guggenheim’), and (iii) the projections used by Guggenheim in that analysis.” Lacking this information, stockholders are unable to determine how the companies arrived at the proposed deal and whether it is fair to the investors, the suit says.