Robbins LLP: Life Time Fitness, Inc. Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that an investor of Life Time Fitness, Inc. (NYSE: LTM) has filed a federal securities fraud class action complaint in the U.S. District Court for the District of Minnesota. The complaint alleges that the company and certain of its officers and directors violated sections 14(a) and 20(a) of the Securities Exchange Act of 1934 and the U.S. Securities and Exchange Commission Rule 14a-9 promulgated thereunder, in connection with the proposed going private sale of the company to a consortium of investors led by Leonard Green & Partners, L.P. Pursuant to the proposed transaction, Life Time shareholders would receive $72.10 per share.
Life Time Files a False and Misleading Proxy Statement
According to the complaint, Life Time filed a false and misleading Definitive Proxy Statement with the U.S Securities and Exchange Commission in an attempt to secure shareholder approval of the proposed transaction. Specifically, the complaint alleges that Life Time’s Proxy Statement misrepresented and failed to disclose, among other things: (i) the full texts of the “Rollover Agreement” and “CEO Term Sheet” signed by Life Time’s Chief Executive Officer and Chairman, Bahram Akradi, that govern the exchange of $125 million worth of shares in the company to the surviving operation and govern the terms of Akradi’s continued employment as CEO of the surviving corporation, respectively; (ii) the true appraisal of the company’s real estate holdings; (iii) the pre-existing relationship between the company’s financial advisors for the proposed transaction and members of the consortium of investor purchasers; and (iv) that both Life Time’s CEO and president signed a shareholder voting agreement requiring them to vote their shares of the company in favor of the proposed transaction, even if the board determines that the merger is no longer in the best interest of the company. The complaint contends that the omitted and misrepresented information is material to Life Time shareholders’ ability to make an informed decision whether to approve the proposed transaction.
Life Time Shareholders Have Legal Options
If you purchased or otherwise acquired Life Time stock prior to the announcement of the proposed transaction on March 16, 2015, and would like more information about your rights and potential remedies, please can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.