LegalCaseDocs.com
shopping cart  
  |     
Search
 

 
New Visitors


 VeriSign Secure Site

 Get Adobe Reader

T. ROWE PRICE RECOVERY FUND v RUBIN Click to find out why . . .



Keywords & Phrases
CaseNo: C.A. No. 18,013, CourtCode: CC, CourtName: S N THE COURT OF CHANCERY OF THE STATE OF DELAWARE, Plaintiff: T. ROWE PRICE RECOVERY FUND, State: DE Delaware, UniqueCaseRef: DE>CC>00018013, Seaman, Rubin, Management, Levitz, Sass, Transaction, Rosenberg, Resurgence, Executive Management, Common Stock, Shareholders, Shares, Investment, Majority, Mcgeough, Price, Agreements, Delaware, Fiduciary Duties, Halper, Sass Corporate Resurgence, Resurgence Asset Management, Esquire, Directors, Peter Mcgeough, Affiliates, Seaman Furniture, Carl Marks, Stock, Price Recovery Fund, Special Committee, Seaman Furniture Company, Manager Defendants, Agreement, Nominal Defendant, Symington , ContentID: 120239665

Case Documents
1 2000-08-10 ORDER APPROVING SETTLEMENT
[ see first page and extracted highlights below  ] ItemID: 103630
3 pages
PDF
2 2000-06-23 MEMORANDUM OPINION
[ see first page and extracted highlights below  ] ItemID: 100184
44 pages
PDF
3 2000-06-19 VERIFIED AMENDED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 101147
31 pages
PDF
4 2000-06-03 ANSWERING BRIEF OF DEFENDANTS A. ROSENBERG S. HALPER AND P. MCGEOUGH IN OPPOSITION TO PLAINTIFFS MOTION FOR A PRELIMINARY INJUNCTION
[ see first page and extracted highlights below  ] ItemID: 102408
28 pages
PDF
5 2000-04-26 VERIFIED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 101148
31 pages
PDF
Total Documents: 5 documents , 137 pages
Price: $ 39.95


IVESLCD01 KGI0001
 
 

 Forgot your password?


1 . ORDER APPROVING SETTLEMENT

EXTRACTED KEY WORDS
COURT
SEAMAN FURNITURE
DEFENDANT
INVESTMENTS
SASS
RESURGENCE
PARTIES
STOCKHOLDERS
DELAWARE
HOWE PRICE RECOVERY
BEHALTF
RUHIN
RESURGENCE ASSET MANAGEMENT
SASS CORPORATE RESURGENCE
ROBERT
BYRON HANEY
ALAN
ROSENBERG
HALPER
PETER KGEOUGH
SEANAN FURNITURE
SEAMAN FURNITURE COMPANY
THA
PURSUANT
BOND RELATED THERETO
PLAINTIFFS
EFFECT PENDING INNTRY
ORDER DISMISSING
PREJUDICE
AUG-IO-00 THU 'i2:O-f PM                              FAX NO.                               P. 02



              S:N THE COURT OF CHANCERY OF THE STATE OF DELAWARE

                               3:N AND FOR NEW CASTLE COUNTY


   T. HOWE PRICE RECOVERY E'LJND, L.P., )
   CARL EIARKS MANAGEMENT CO,, L.P.,            )
   CARL MARKS STRATEGIC INVESTMENTS,  )
   L.P. and CARL MARKS STRATEGIC                )
   INVESTMENTS II , L.Y., individually  )
   and derivatively on behaltf of
   SEAMAN FURNITURE CO., INC.,

                            Plaintiffs,         i C.A. No. 18013
                 v.                             )1
   J.4MES RUHIN, M.D. SASS ASSOCIATES, )
   INC., RESURGENCE ASSET MANAGEMENT,
   L.L.C., ll.D. SASS CORPORATE                 1
   RESURGENCE PARTNERS, L.P., M.D.              1
   SASS CORPORATE RESURGENCE
   INTERNATIONAL, LTD., ROBERT
   SYMXNGTO'N, BYRON HANEY,  ALAN
   ROSENBERG, STEVEN  8.  HALPER, and
   PETER KGEOUGH,

                            Defendants,

                  and

    SEANAN FURNITURE CO., INC.,

                            Nominal Defendant. ,


                                ORDE'R AI'PROVING SETTLEMENT
                              &ND STAYING FURTHER PROCEEDINGS

                  WHEREAS, the parties to the above-captioned individual

    and derivative action and all other stockholders of nominal

    defendant Seaman Furniture Company, Inc. have entered into a



SNIPPETS:
  • S:N THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • T. HOWE PRICE RECOVERY E'LJND, L.P.,)
  • CARL MARKS STRATEGIC INVESTMENTS,)
  • INVESTMENTS II, L.Y., individually) and derivatively on behaltf of
  • SEAMAN FURNITURE CO., INC.,
  • J.4MES RUHIN, M.D. SASS ASSOCIATES,) INC., RESURGENCE ASSET MANAGEMENT,
  • SASS CORPORATE RESURGENCE INTERNATIONAL, LTD., ROBERT SYMXNGTO'N, BYRON HANEY, ALAN
  • ROSENBERG, STEVEN 8.
  • PETER KGEOUGH,
  • SEANAN FURNITURE CO., INC.,
  • Nominal Defendant.
  • the parties to the above-captioned individual
  • and derivative action and all other stockholders of nominal
  • the Settlement Agreement is subject to the
  • 2000 tha?
  • the Settlement Agreement is approved pursuant to
  • Action and the bond related thereto pcsted by plaintiffs shall
  • remain:i.n effect pending Inntry, subject to the terms of the
  • order dismissing the Action
  • with prejudice.

  • 2 . MEMORANDUM OPINION

    EXTRACTED KEY WORDS
    MANAGEMENT
    PLAINTIFFS
    DEFENDANTS
    RUBIN
    RESURGENCE
    AGREEMENTS
    LEVITZ
    COURT
    ROSENBERG
    INVESTMENT
    MCGEOUGH
    PRICE
    ESQUIRE
    TRANSACTION
    DELAWARE
    CARL MARKS
    SASS CORPORATE RESURGENCE
    SEAMAN FURNITURE
    DIRECTORS
    SPECIAL COMMITTEE
    RESURGENCE ASSET MANAGEMENT
    SYMINGTON
    ALEX BROWN
    PROPOSALS
    PRICE RECOVERY FUND
    RESURGENCE PARTNERS
    BYRON HANEY
    ATTORNEYS
    INJUNCTION
    
                                                                                ,,
    
    
    
    
    
    
    
    
    
          IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                       IN AND FOR NEW CASTLE COUNTY
    
    T. ROWE PRICE RECOVERY FUND, L.P.,
    CARL MARKS MANAGEMENT CO., L.P.,
    CARL MARKS STRATEGIC INVESTMENTS,
    L.P. and CARL MARKS STRATEGIC
    INVESTMENTS II, L.P., individually and
    derivatively on behalf of SEAMAN FURNITURE
    CO., INC.,
    
                                     Plaintiffs,
            V.                                                 CA. No. 18013
    
    JAMES RUBIN,  M.D. SASS ASSOCIATES,
    INC., RESURGENCE ASSET MANAGEMENT,
    L.L.C., M.D. SASS CORPORATE
    RESURGENCE PARTNERS, L.P., M.D.
    SASS CORPORATE RESURGENCE
    INTERNATIONAL, LTD., ROBERT
    SYMINGTON, BYRON HANEY, ALAN
    ROSENBERG, STEVEN H. HALPER, and
    PETER MCGEOUGH,
    
                                     Defendants,
            and
    
    SEAMAN FURNITURE CO., INC.,
    
                             Nominal Defendant.
    
    
                            MEMORANDUM OPINION
    
                               Submitted: June  19,200O
                                Decided: June 23,200O
    
    Martin P. Tully, Esquire and David John Teklits, Esquire, of MORRIS,
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • CARL MARKS STRATEGIC INVESTMENTS,
  • L.P. and CARL MARKS STRATEGIC INVESTMENTS II, L.P., individually and derivatively on behalf
  • JAMES RUBIN, M.D. SASS ASSOCIATES, INC., RESURGENCE ASSET MANAGEMENT, L.L.C., M.D. SASS
  • PETER MCGEOUGH,
  • Martin P. Tully, Esquire and David John Teklits, Esquire, of MORRIS, NICHOLS, ARSHT &
  • Daniel A. Dreisbach, Esquire, of RICHARDS, LAYTON & FINGER, Wilmington, Delaware; Andrew J.
  • William D. Johnston, Esquire and John J. Paschetto, Esquire, of YOUNG, CONAWAY, STARGATT &
  • On April 26, 2000, two investment funds collectively holding 42 % of the
  • Levitz Furniture, Inc., which has been in bankruptcy since 1997.
  • Agreements are an integral part of Levitz's plan to emerge from bankruptcy.
  • Plaintiffs originally sought an expedited trial:in this matter.
  • moved for a preliminary injunction when defendants insisted that the matter be
  • Plaintiffs T. Rowe Price Recovery Fund,
  • Byron Haney are Resurgence's designees to the Seaman board of directors.
  • Each of Seaman's principal investors has sought to pursue a transaction
  • Alex Brown as their financial advisor and the law firm of Swidler Berlin Shereff
  • Special Committee sought the advice,
  • Rosenberg also testified that Management kept Senior Management apprised of the various

  • 3 . VERIFIED AMENDED COMPLAINT

    EXTRACTED KEY WORDS
    SASS
    RUBIN
    LEVITZ
    TRANSACTION
    PLAINTIFFS
    MANAGEMENT
    COMMON STOCK
    DEFENDANTS
    INVESTMENT
    MAJORITY
    SHAREHOLDERS
    ASSET MANAGEMENT
    FIDUCIARY DUTIES
    RESURGENCE ASSET MANAGEMENT
    SHARES
    MANAGER DEFENDANTS
    NOMINAL DEFENDANT
    SEAMAN FURNITURE COMPANY
    SASS CORPORATE RESURGENCE
    DIRECTORS
    ROSENBERG
    AFFILIATES
    CASH FLOW
    ROWE PRICE
    FUND
    JAMES RUBIN
    MAJORITY STOCKHOLDER
    MANAGEMENT RESPONSIBILITIES
    TO-BE-FORMED DIVISION
    
            IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE               '1
                          IN AND FOR NEW CASTLE COUN1'Y                    4ff' -
    T. ROWE PRICE RECOVEF:Y FUND, L.P., )
    CARL MARKS MANAGEMENT CC)., L.P.,          )
    CARL MARKS STRATEGIC  INVE:STMENTS,   )
    L.l?. and CARL MARKS STRATEGIC             )
    INVESTMENTS II, L.P., individually )
    and derivatively on behalf of              )
    SEAMAN FURNITURE CO., IblC.,               ))
                       Plaintiffs,             ))     C.A.  qo. 18013
              V .                              )1
    JAMES  RUBIN, M.D. SASS ASSOCIATES, 1
    INC., RESURGENCE ASSET MANAGEMENT, )
    L.:L.C., M.D. SASS CORPOFATE               1
    RESURGENCE PARTNERS,  L.E'., M.D.          1
    SASS CORPORATE RESURGENCE;                 1
    INTERNATIONAL, LTD.,  ROEiEIRT             1
    SYMINGTON,  BYRON HANEY, ALAN              1
    ROSENBERG, STEVEN H.  HALPER, and          1
    PETER MCGEOUGH,                            11
                       Defendants,              11
               and                              11
    SEAMAN FURNITURE CO., INC.,                 1
    
                       Nominal Defendant.
    
    
                           V:ERIl":CED  AMENDED  COMPLAIN'I!
    
               Plaintiffs T.          Rowe Price Recover:{ Fund,  L-P.,    Carl
    
    Marks Management Co.., G.P., Carl Marks Strategic Investments,
    
    L.P. and Carl Marks Strategic Investments II,  L-P., by their
    
    
    
    undersigned         attorneys,      allege     for      their      complaint          against
    
    defendants as follows:
    
                                     NjtJJJRE OF THE ACTION
    
                  1.      Plaintiffs, the holders of  ai?proximately  42% of
    
    the fully diluted  common  stock of Seaman Furniture Company, Inc.
    
    ( "!Seaman" or the "Company"), bring this action individually and
    
    
    SNIPPETS:
  • T. ROWE PRICE RECOVEF:Y FUND, L.P.,)
  • JAMES RUBIN, M.D. SASS ASSOCIATES, 1 INC., RESURGENCE ASSET MANAGEMENT,)
  • the fully diluted common stock of Seaman Furniture Company,
  • solely to benefit the majority stockholder elf Seaman, M.D. Sass
  • Sass, including but not limited to Resurgenc:e Asset Management,
  • L.:L.C., M.D. Sass Corporate Resurgence Partners, L.P., and M.D..
  • In the Proposed Interested Transaction,
  • to assume all management responsibilities with respect to Levitz
  • East, a to-be-formed division or subsidiary of Levitz, which
  • Sass' majority stockholdings in Seaman and Levitz will be
  • The Seama,n director and offr.cer defendants, as
  • and its affiliates have the primary material financial interest
  • plaintiffs are entitled to an injunction against the Proposed
  • Rosenberg, Steven Ela:Lpei: and Peter McGeough that enabled Sass to
  • These sales constituted breaches of their fiduciary duties as
  • mu-tual benefit of all Seaman shareholders, defendants Rosenberg,
  • and McGeough sold sufficient shares of stock to Sass to
  • Nominal Defendant Seaman Furniture Company,
  • investment advisor affiliated with M.D. Sass,
  • to Resurgence Asset Management, M.D. Sass Corporate Resurgence
  • Four of the seven present directors of Seaman are
  • true operating cash flow and losses are significantly worse than
  • shareholders, less than one month later, the manager defendants

  • 4 . ANSWERING BRIEF OF DEFENDANTS A. ROSENBERG S. HALPER AND P. MCGEOUGH IN OPPOSITION TO PLAINTIFFS MOTION FOR A PRELIMINARY INJUNCTION

    EXTRACTED KEY WORDS
    PLAINTIFFS
    EXECUTIVE MANAGEMENT
    ROSENBERG
    SHARES
    SHAREHOLDERS
    COURT
    RESURGENCE
    PRICE
    MCGEOUGH
    HALPER
    FIDUCIARY DUTIES
    DELAWARE
    RUBIN
    STOCK
    DEFENDANTS
    AGREEMENT
    PRELIMINARY INJUNCTION
    CONTROL PREMIUM
    FURNITURE
    ALAN ROSENBERG
    PETER MCGEOUGH
    OPPOSITION
    TRANSACTION
    CARL MARKS MANAGEMENT
    AMERICAN RESOURCES
    COMPLAINT
    GOLDEN DEP
    ROSENBERG AFF
    REASONABLE PROBABILITY
    
                    1X THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                                         I-N AND FOR NEW CASTLE COUNTY
    
    T  ROWE  PRICE RECOVERY FUND, L.P ,
    and CARL MARKS MANAGEMENT CO., L.P
    derivatively and on behalf of SEAMAN
    FURNITURE CO., INC ,
    
                                  PlaintilTs,
    
                           v                                                    C.A No. 18013
    
    JAMES  RUBIN, M D. SASS ASSOCIATES,
    INC.,  RESURGENCE ASSET MANAGEMENT,                                         CONFIDENTLAL  -
    L.L.C , M D. SASS CORPORATE                                                 FILED UNDER SEAL
    RESURGENCE INTERNATIONAL, LTD.,
    ROBERT  SYMINGTON, BYRON HANEY,
    ALAN ROSENBERG,  STEVEN H  HALPER,
    and PETER McGEOUGH,
    
                                  Defendants,
    
                           and
    
    SEAMAN FURNITURE CO' , I-NC.,
    
                                  Nominal Defendant
    
                     ANSWERING BRLEF OF DEFENDANTS ALAN ROSENBERG,
               STEVIEN H. HALPER, AND PETER MCGEOUGH IN OPPOSITION TO
                        ~,AINTIFFS'~IOTION  FOR A PRELIMINARY YNJUNCTION
    
    
                                                       YOIJNG  CONAWAY STARGATT g: TAYLOII  LLP
                                                       David C. McBride
                                                       William D. Johnston
    OF COUNSEL                                         Christian Douglas Wright
    l?eter' 1,. AJtieri                                John J. Paschetto
    1Stefanie  Gatti                                   Eleventh Floor, Wilmington Trust Center
    David J. Clark                                     1100 North Market Street
    EPSTEIN  13ECKER  &  GKEEEJ, PC                    Wilmington, DE I980 1
    250 Park .4venue                                   (302) 57 l-6679
    Uew York, NY 10177                                 Attorneys for Defendants Alan Rosenberg, Steven
    (2 12) 35 l-11592                                     Halper  and Peter McGeouph
    
    DATED. June  13, 2000
    
    
    
    
    SNIPPETS:
  • 1X THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • T ROWE PRICE RECOVERY FUND, L.P,
  • JAMES RUBIN, M D. SASS ASSOCIATES,
  • SEAMAN FURNITURE CO', I-NC.,
  • ANSWERING BRLEF OF DEFENDANTS ALAN ROSENBERG, STEVIEN H. HALPER, AND PETER MCGEOUGH IN
  • REASONABLE PROBABILITY OF SLJCCESS ON THE
  • A Executive Management Did Not Breach Any
  • Fiduciary Duties to Seaman or Its Shareholders
  • Shares to a Corporate "Looter"
  • Plaintiffs Cannot State a Claim for Breach of Fiduciary
  • preliminary injunction should not be issued because, among other things, plaintiffs have not
  • to now force a buyout oftheir stock interest.
  • rhe case as'sumes the shape of a purported derivative and individual action, with the
  • ~challenging a self-proclaimed "Potential Interested Transaction."
  • Carl Marks Management Co., L.P. filed this action seeking,
  • and various er&:ies associate'd with him (collectively with Rubin, the "Resurgence
  • Agreement.
  • `v'ice-President-Chief Administ,rative and Financial Officer of Seaman (Rosenberg Aff.
  • plaintiffs ~pedicallv chose not IO do so afier haj:ing been advised by counsel for Seaman
  • shareholders the opportunity to receive a control premium from sale of control of the
  • See also American Resources Corp. v. Mazur, 9th Cir, No 90-55529.

  • 5 . VERIFIED COMPLAINT

    EXTRACTED KEY WORDS
    SASS
    LEVITZ
    RUBIN
    TRANSACTION
    DEFENDANTS
    PLAINTIFFS
    MANAGEMENT
    COMMON STOCK
    MAJORITY
    ROSENBERG
    AFFILIATES
    HALPER
    SHAREHOLDERS
    RESURGENCE ASSET MANAGEMENT
    PETER MCGEOUGH
    FIDUCIARY DUTIES
    ROWE PRICE RECOVERY
    INVESTMENT
    PRICE RECOVERY FUND
    SASS CORPORATE RESURGENCE
    SEAMAN FURNITURE COMPANY
    MANAGER DEFENDANTS
    NOMINAL DEFENDANT
    SERVICES AGREEMENT
    OPERATING
    DIRECTORS
    VERIFIED COMPLAINT
    MARKS MANAGEMENT
    MAJORITY STOCKHOLDER
    
           IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                          IN AND FOR NEW CASTLE COUNTY
    
    
    T. ROWE PRICE RECOVERY FUND, L.P. )
    and CARL MARKS MANAGEMENT CO.,         )
    L.P., individually and
    derivatively on behalf of SEAMAN       1
    FURNITURE CO., INC.,                   )1
                       Plaintiffs,         )1
              V.                           )1
    JAMES RUBIN, M.D. SASS ASSOCIATES, )
    INC., RESURGENCE ASSET MANAGEMENT, )
    L.L.C., M.D. SASS CORPORATE            )
    RESURGENCE PARTNERS, L.P., M.D.        )
    SASS CORPORATE RESURGENCE
    INTERNATIONAL, LTD., ROBERT            1
    SYMINGTON, BYRON HANEY, ALAN            )
    ROSENBERG, STEVEN H. HALPER, and )
    PETER MCGEOUGH,
                                            I
                       Defendants,
                                            1
              and                           )1
    SEAMAN FURNITURE CO., INC.,                                  .
                                            i                    :  .
                       Nominal Defendant. )
    
                                VERIFIED COMPLAINT
    
              Plaintiffs T. Rowe Price Recovery Fund, L.P. and Carl
    
    Marks Management Co., L.P., by their undersigned attorneys,
    
    allege for their complaint against defendants as follows:
    
    
    
                                     NATURE OF THE ACTION
    
                  1.      Plaintiffs, the holders of approximately 42% of
    
    the fully diluted common stock of Seaman Furniture Company, Inc.
    
    ("Seaman" or the "Company"), bring this action individually and
    
    derivatively on          behalf of         Seaman to        enjoin      the    proposed
    
    management          agreement      and    shared    services          agreement    (the
    
    SNIPPETS:
  • SASS CORPORATE RESURGENCE
  • VERIFIED COMPLAINT
  • Plaintiffs T. Rowe Price Recovery Fund,
  • Marks Management Co., L.P., by their undersigned attorneys,
  • allege for their complaint against defendants as follows:
  • the fully diluted common stock of Seaman Furniture Company,
  • "Proposed Interested Transaction") between Seaman and Levitz
  • solely to benefit the majority stockholder of Seaman,
  • Associates, Inc., and other entities or affiliates controlled by
  • Sass, including but not limited to Resurgence Asset Management,
  • L.L.C., M.D. Sass Corporate Resurgence Partners, L.P., and M.D.
  • Sass' majority stockholdings in Seaman and Levitz will be
  • well as Sass, have breached their fiduciary duties of loyalty,
  • bonds), as well as over 40% of Levitz's post-petition, debtorJames Rubin, has wrongfully
  • improperly replaced independent Seaman directors with Sass' own
  • services agreement that is grossly unfair to Seaman and to
  • Rosenberg, Steven Halper and Peter McGeough that enabled Sass to
  • mutual benefit of all Seaman shareholders, defendants Rosenberg,
  • Nominal Defendant Seaman Furniture Company,
  • investment advisor affiliated with M.D. Sass Investors Services
  • Operating Officer, and McGeough is Seaman's Chief Financial
  • Against The Manager Defendants
  •    |