(CN) – A Dr. Pepper Snapple Group shareholder claims in court that the impending $18.7 billion acquisition of the beverage behemoth by specialty coffee company Keurig Green Mountain is tainted by the alleged withholding of crucial information about the deal.
The lawsuit was filed in Delaware Chancery Court against Dr. Pepper Snapple and its board of directors alleging violations of the Securities Exchange Act by shareholder Al Roth.
On Jan. 29, 2018, Dr. Pepper Snapple announced the acquisition where Keurig, through its majority owner, JAB Holding Company, will pay $103.75 per share to Dr. Pepper Snapple investors. Dr Pepper Snapple investors will retain 13% of the combined company while Keurig investors will hold 87%.
Roth claims company directors gave “false and misleading” registration statements to the Securities Exchange Commission in connection with the deal in March, failing to detail the background of the transaction, the company’s financial forecasts, and the valuation analyses used by its financial advisor to determine the fairness of the deal.
“Shareholders need this material information to decide whether to vote in favour of the proposed transaction,” the suit states.
Plaintiff is represented by Ryan M. Ernst and Daniel P. Murray of O’Kelly Ernst & Joyce LLC in Wilmington, Del. and Thomas J. McKenna and Gregory M. Egleston of Gainey McKenna & Egleston in New York.