NCI Faces Lawsuit in Virginia Over Proposed Merger with H.I.G. Capital

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NCI, Inc. and its board of directors are the defendants in a proposed class action lawsuit filed in Virginia. The suit alleges that the company and its executives issued a misleading recommendation statement to investors regarding a proposed merger with H.I.G. Capital, LLC. The statement allegedly fails to disclose details concerning the company’s financial projections, figures used in the valuation analyses performed by NCI’s financial advisors, and potential conflicts of interest faced by those advisors.

The plaintiff claims NCI displayed “strong growth prospects” and that the proposed transaction undervalues the company. She further argues that NCI’s financial advisors have sustained business relationships with members of H.I.G. Capital that may have influenced their decision to recommend the merger. According to the complaint, stockholders require the missing information in order to determine for themselves whether the deal is fair.