SAN DIEGO & FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a lawsuit was filed against current and former members of the board of directors of Patriot National, Inc. (NYSE: PN) in the U.S. District Court for the Southern District of New York. The complaint is brought for alleged violations of the Securities Exchange Act of 1934 by Patriot National's officers and directors. Patriot National, together with its subsidiaries, provides technology-enabled outsourcing solutions within the workers compensation marketplace for insurance carriers, local governments, reinsurance captives, and other employers in the United States.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/patriot-national-inc-aug-2017
Patriot National Accused of Failing to Make Good on Contractual Obligations
According to the complaint, on December 13, 2015, Hudson Bay Master Fund Ltd. ("Hudson Bay") entered into an agreement with Patriot National and its controlling shareholder, President, Chief Executive Officer and Chairman of its board of directors, Steven Mariano (the "Initial Transaction"). The Initial Transaction consisted of a Securities Purchase Agreement that provided for the sale of restricted, unregistered shares and the issuance of Series A and Series B warrants. When Patriot National's stock price dropped upon the announcement of the Initial Transaction, Patriot National's board negotiated a new agreement in which Hudson Bay would return a portion of the shares it had purchased from Patriot National and receive new warrants (the "New Warrants"). The complaint alleges that the New Warrants were used as a false promise to induce Hudson Bay to agree to the new agreement and invest in the company. When Hudson Bay sought to exercise the New Warrants, the Patriot National board refused to have the company deliver the shares in violation of its contractual commitments.
Patriot National Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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