AutoInfo commences federal securities litigation against Steel Partners and Ryback Management Corp.FAIR LAWN Fair Lawn, borough (1990 pop. 30,548), Bergen co., NE N.J., across the Passaic River from Paterson; inc. 1924. It is residential with light industries. , N.J.--(BUSINESS WIRE)--June 15, 1995--AutoInfo, Inc. (NASDAQ/NMS: AUTO) announced today that it had filed a lawsuit in Delaware Federal Court alleging that Steel Partners, Ryback Management Corp. and certain individuals affiliated with those entities had violated the Federal Securities laws in connection with their acquisition of AutoInfo stock and Steel Partners' ongoing consent solicitation Consent Solicitation A solicitation by one party to the stakeholders of a particular security for the consent of a material change. Notes: Should the majority of stakeholders provide valid consent prior to the consent expiry date, the issuer may then follow through with to replace the entire Board of Directors of AutoInfo with Steel Partners' designees. In its 35 page complaint, AutoInfo has alleged that Steel Partners has violated sections 13(d) and 14(a) of the Securities and Exchange Act of 1934 by, among other things, filing false and misleading Schedules 13D that failed to disclose Steel Partners' original intent -- from at least the summer of 1994 -- to attempt to take control of AutoInfo and that Steel Partners had been acting in concert with Ryback in its surreptitious SURREPTITIOUS. That which is done in a fraudulent stealthy manner. takeover attempt Noun 1. takeover attempt - an attempt to take control of a corporation bear hug - a takeover bid so attractive that the directors of the target company must approve it or risk shareholder protest . The complaint alleges that Ryback has violated the Federal Securities laws by fraudulently certifying, in January 1995, that it had no intent to influence control of AutoInfo when, in fact, Ryback was working with Steel Partners in support of its takeover plans and alleges that Ryback has further violated federal laws by failing to file a Schedule 13D Schedule 13D An form that must be filed with the SEC under Rule 13D when a person or group acquiring more than 5% of any class of a company's shares to disclose this information within 10 days of the transaction. disclosing the full extent of its holdings in AutoInfo or its actions in support of Steel Partners' takeover attempt. The AutoInfo complaint seeks, among other things to have the Delaware Federal Court enjoin To direct, require, command, or admonish. Enjoin connotes a degree of urgency, as when a court enjoins one party in a lawsuit by ordering the person to do, or refrain from doing, something to prevent permanent loss to the other party or parties. Steel Partners' ongoing consent solicitation and to require the defendants to file corrected disclosure documents. AutoInfo has sought expedited treatment of its lawsuit. CONTACT: William I. Wunderlich 201/703-0500 |
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