PHILADELPHIA (Dec. 7, 2015) — At least four Pep Boys – Manny, Moe & Jack shareholders have filed class-action lawsuits against Pep Boys and the company's board of directors.
The litigation accuses them of failing to maximize shareholders' interests in accepting Bridgestone Americas' $15 per-share offer for the company.
Specifically, the suits — filed in Court of Common Pleas in Philadelphia County, Pa. — allege claims for breach of fiduciary duties against Philadelphia-based Pep Boys' directors and claims against Bridgestone Americas, parent and purchaser, “for aiding and abetting the Individual defendants' purported breaches of fiduciary duties in connection with entering into the merger agreement and effecting the transactions.”
The suits were filed by “purported” shareholders Stephen Bushansky, Henry Tindel, David Katz and John Solak in November, according to an SC TO-T/A filing by Bridgestone Retail Operations L.L.C., amending its earlier tender offer for Pep Boys.
In their suits, the plaintiffs cite references in Bridgestone's tender offer that Pep Boys entertained several offers other than Bridgestone's — offers the plaintiffs contend could have yielded a better offer.
Bridgestone did not comment on the lawsuits' claims.