The Finish Line Facing Securities Suit Over ‘Misleading’ Proxy Statement

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The Finish Line, Inc. and its board of directors have been named in a proposed class action that takes issue with a supposedly misleading proxy statement filed in connection with a potential merger between the company and JD Sports Fashion plc. According to the lawsuit, the defendants issued a proxy statement on April 24, 2018 in which it encouraged stockholders to support the proposed transaction. The case argues, however, that the statement was missing key information concerning The Finish Line’s financial projections and the valuation analyses performed by its financial advisor. The complaint claims this data is material to stockholders because it “provides [them] with a basis to understand the future financial performance of a company” and decide whether the proposed deal is fair to them.

"The above-referenced omitted information, if disclosed, would significantly alter the total mix of information available to the Company’s stockholders," the lawsuit asserts.