Robbins Geller Rudman & Dowd LLP Files Shareholder Derivative Suit on Behalf of Tetragon Financial Group, Ltd.
June 25, 2013 – Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) today announced that a shareholder derivative action has been commenced in the United States District Court for the Southern District of New York on behalf of Tetragon Financial Group, Ltd. (“Tetragon” or the “Company”) (NA:TFG).
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a shareholder of Tetragon, you can view a copy of the complaint here.
The complaint charges the directors and officers of Tetragon and its investment manager, Tetragon Financial Management LP (the “Investment Manager”), with violations of the Investment Advisers Act of 1940, fiduciary breach and unjust enrichment.
On October 29, 2012, Tetragon announced that it had agreed to acquire Polygon Management LP (“Polygon”), an asset management business owned and operated by Tetragon’s founders, principals and directors, Reade Griffith and Patrick Dear, for 11.7 million shares of non-voting Company stock (the “Polygon Transaction”). The complaint alleges that Tetragon was forced to pay an unfair price for Polygon by issuing undervalued Company shares instead of paying for Polygon with cash, despite Tetragon’s $353 million cash reserve at the time of the Polygon Transaction. Concurrent with the announcement of the Polygon Transaction, Tetragon announced that it would commence a repurchase of the Company’s non-voting shares for $150 million, which the complaint alleges signaled that the Company’s shares were undervalued and that Tetragon had cash reserves sufficient to purchase Polygon. The complaint further alleges that the structure and timing of these transactions underscores the fact that they were designed by defendants to benefit the owners of Polygon to the detriment of Tetragon and its shareholders.
Plaintiff seeks rescission of the investment advisory agreement between Tetragon and the Investment Manager, as well as restitution of all fees and other benefits paid thereunder. Plaintiff also seeks damages, equitable and injunctive relief, and to remedy defendants’ alleged ongoing breaches of fiduciary duties of good faith, loyalty and independence. The plaintiff is represented by Robbins Geller, which has expertise in prosecuting shareholder derivative lawsuits and extensive experience in actions involving financial fraud and fiduciary breach by corporate officers and directors.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries in history and has been ranked number one in the number of shareholder class action recoveries in MSCI’s Top SCAS 50 every year since 2003. Please visit http://www.rgrdlaw.com for more information.