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KMG Chemicals, Inc. (KMG)

NYSE:KMG

Summary

Faruqi & Faruqi, LLP Announces Filing of a Class Action Lawsuit Against KMG Chemicals, Inc. (KMG)

Notice is hereby given that Faruqi & Faruqi, LLP has filed a class action lawsuit in the United States District Court for the Northern District of Texas, No. 4:18-cv-00785, on behalf of shareholders of KMG Chemicals, Inc. (“KMG” or the “Company”) (NYSE:KMG) who have been harmed by KMG’s and its board of directors’ (the “Board”) alleged violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) in connection with  the proposed merger of the Company with Cabot Microelectronics Corporation (“Cabot”).

On August 14, 2018, the Board caused the Company to enter into an Agreement and Plan of Merger (“Proposed Transaction”) under which each share of KMG common stock will be exchanged for $55.65 in cash and 0.2 shares of Cabot common stock (the “Merger Consideration”). The shareholder vote on the Proposed Transaction is expected to occur on November 13, 2018.

The complaint alleges that the Form S-4 Registration Statement (the “S-4”) filed with the Securities and Exchange Commission (“SEC”) on September 12, 2018, violates Sections 14(a) and 20(a) of the Exchange Act because it provides materially incomplete and misleading information about the Company and the Proposed Transaction, including information concerning the Company’s financial projections and analysis, on which the Board relied to recommend the Proposed Transaction as fair to KMG shareholders.

Contact Counsel

James M. Wilson, Jr.
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330

Email:

Case Details

Date:

  • 10/15/2018

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