West Marine, Directors Named in Securities Lawsuit Over Monomoy Merger

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Boating supply and fishing retailer West Marine, Inc. and its board of directors are on the hook in a proposed class action lawsuit filed over a potential merger between the company and Monomoy Capital Partners. The 18-page complaint, filed in Delaware on behalf of West Marine stockholders, alleges the defendants violated federal securities laws when they filed an “incomplete and misleading” Preliminary Proxy Statement to the US Securities and Exchange Commission that supposedly failed to “disclose certain material information” necessary for shareholders to properly assess the fairness of the proposed merger.

“In particular, the Proxy contains materially incomplete and misleading information concerning the financial projections for [West Marine] that were relied upon by the Board in recommending [West Marine’s] shareholders vote in favor of the merger and utilized by West Marine’s financial advisor, Guggenheim Securities, LLC in performing the valuation analyses that support its fairness opinion,” the lawsuit alleges.