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JLG INDUSTRIES FILES LAWSUIT AGAINST JOHN GROVE ALLEGING VIOLATIONS OF FEDERAL SECURITIES LAWS

    McCONNELLSBURG, Pa., Aug. 5 /PRNewswire/ -- In a lawsuit filed today in U.S. District Court for the Middle District of Pennsylvania, JLG Industries, Inc. (NASDAQ-NMS: JLGI) alleges that co-founder and former Board Chairman John L. Grove has violated the Securities Exchange Act of 1934 and the rules and regulations of the Securities and Exchange Commission.
    Specifically, the lawsuit charges that Grove, in trying to recruit new board members and seeking support for his slate, violated federal law and SEC rules by engaging in proxy solicitations without filing proxy materials with the SEC.  Grove publicly disclosed his intention to replace a majority of the company's incumbent directors in a Schedule 13D filed with the SEC in April.  The lawsuit also charges that Grove, in his April 9 and May 10, 1993, Schedule 13D filings, failed to disclose his efforts to dispose of his company stock either by convincing the company to repurchase the stock at a premium or by sales to third parties.  SEC regulations require persons filing a Schedule 13D to disclose any plans or proposals they may have that relate to or would result in the disposition of securities of the company in respect of which the Schedule 13D is filed.
    The lawsuit requests the Court to order Grove to amend his Schedule 13D to disclose his intentions with respect to his JLG stock and to enjoin Grove from soliciting proxies in violation of federal law and SEC regulations governing proxy solicitations.
    Grove's efforts to induce the company to purchase his stock at a premium began last summer after a special committee of outside directors acted to resolve a dispute between Grove and senior management by unanimously reaffirming the management team led by CEO L. David Black, and instructing Grove to refrain from interfering in day-to-day company operations.  This spring Grove sued the company and all of the directors, except cofounder Paul Shockey, seeking recission of a bylaw amendment that removed Grove's unilateral right to call a special shareholders' meeting.  In connection with that lawsuit, last week Grove refused to appear for depositions during which he would have been required to testify under oath regarding his plans for disposing of his stock and his communications with shareholders.  Grove's counsel has stated that Grove now intends to dismiss the lawsuit he filed this spring.
    JLG Industries, Inc. is a manufacturer and international marketer of aerial work platforms and a leading producer of truck-mounted, materials-handling equipment.  Sales are made principally to independent distributors who sell and rent the company's products to a broad customer base which includes users in the industrial, commercial, institutional and construction markets.
    The company is headquartered in McConnellsburg, Pa., with additional manufacturing facilities in Fort Littleton, Bedford and York, Pa., and sales and service facilities in Scotland, France and Australia.
    /delval/
    -0-             08/05/93
    CONTACT:  Charles H. Diller Jr., executive vice president and CEO of JLG Industries, 717-485-5161
    (JLGI) CO:  JLG INDUSTRIES, INC. ST:  PA


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Publication:PR Newswire
Date:Aug 5, 1993
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