Faruqi & Faruqi, LLP Launches An Investigation Against Hovnanian Enterprises Inc. (HOV) For Potential Breaches Of Fiduciary Duties By Its Board Of Directors
Faruqi & Faruqi, LLP, a leading national securities firm headquartered in New York City, is investigating the Board of Directors of Hovnanian Enterprises Inc. (“Hovnanian” or the “Company”) (NYSE: HOV) for potential breaches of fiduciary duties in connection with their conduct in seeking shareholders’ approval for an amendment to the Company’s Certificate of Incorporation.
Specifically, in the Proxy Statement filed by the Company with the Securities and Exchange Commission on January 28, 2013, the Board of Directors recommends that Hovnanian’s shareholders vote to approve an amendment to the Company’s Certificate of Incorporation to increase the number of authorized shares of Class A Common Stock from 200,000,000 shares to 400,000,000 shares. The proxy also recommends that shareholders vote to increase the number of authorized shares of Class B Common Stock from 30,000,000 shares to 60,000,000 shares, and recommends that shareholders vote to approve an advisory vote on executive compensation. The issuance of the additional shares could have a substantial dilutive effect on the shares of Hovnanian common stock.
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