Shareholders of DFC Global Corp. have filed lawsuits in the Delaware Court of Chancery alleging that the loan provider’s board of directors breached its fiduciary duties when it approved a $1.3 billion sale of DFC Global to an affiliate of private equity group Lone Star Funds. The stockholders alleged DFC’s board undervalued the company, implemented excessive deal-protection measures and was self-interested in the transaction.
Two DFC shareholders filed lawsuits April 18 contesting the proposed merger announced earlier this month by both parties. Faruqi & Faruqi’s Delaware office represents plaintiff Maxine Phillips, and Andrews & Springer represents plaintiff Michael Marcus. The complaints are expected to be consolidated because they allege the same facts and requested class-action status. Vice Chancellor Donald F. Parsons Jr. oversees both cases.
