Orbital ATK Facing Sixth Securities Lawsuit Over Proposed Merger

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Another proposed class action lawsuit was filed in October against Orbital ATK, Inc. and its board of directors after they filed an allegedly misleading proxy statement in connection with Northrop Grumman Corporation’s potential acquisition of the company. According to the suit, the proxy statement failed to disclose details of Orbital’s financial projections, figures used in the valuation analyses performed by its financial advisor, and potential conflicts of interest among the company’s board of directors.

Notably, the complaint claims the board members will receive millions of dollars in vested shares and “golden parachute” compensation if the transaction is completed. On top of that, the plaintiff argues, the proxy statement is silent about the possibility of board members’ future employment with the new company.