Suit Challenging Merger of AF and FedEx Dismissed
December 15, 2000
A class-action lawsuit challenging the proposed sale of American Freightways to FedEx Corp. was dismissed at the plaintiff's request before being served against AF and its board.
According to the Associated Press, Jonathon Lovejoy sued as a shareholder of the Harrison, Ark.-based LTL carrier, alleging that board members breached their responsibility to investors by failing to disclose important material about the deal, which was announced on Nov. 13.
Lovejoy contended that AF had stopped or deterred higher officers from talking to others who might be interested in acquiring the company.
The lawsuit asked the court to decide if AF used the sale to benefit themselves at the expense of Lovejoy, and if they tried to discourage other offers for the company.
But Lovejoy's lawyers went back to court two weeks ago asking that the lawsuit be dismissed. The suit was dismissed, but it could be filed later, AP reported.