A lawsuit was filed for investors in shares of Eldorado Resorts, Inc. (NASDAQ:ERI) in connection with the proposed takeover and NASDAQ:ERI stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 12/05/2016 -- The Shareholders Foundation announced that an investor who currently holds shares of Eldorado Resorts, Inc. (NASDAQ:ERI), filed a lawsuit in connection with the merger between Eldorado Resorts, Inc. and Isle of Capri Casinos.
Investors who purchased shares of Isle of Capri Casinos (NASDAQ:ISLE) and currently hold any of those NASDAQ:ISLE shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call 858-779-1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to Eldorado Resorts, Inc. (NASDAQ:ERI) stockholders.
On September 19, 2016, Eldorado Resorts, Inc. (NASDAQ:ERI) and Isle of Capri Casinos, Inc. (NASDAQ:ISLE) announced that they have entered into a merger agreement whereby Eldorado Resorts, Inc will acquire all of the outstanding shares of Isle of Isle of Capri Casinos, Inc. for $23.00 in cash or 1.638 shares of Eldorado Resorts, Inc common stock, at the election of each Isle of Capri shareholder, reflecting total consideration of approximately $1.7 billion, inclusive of $929 million of long-term debt of Isle of Capri and its subsidiaries.
However, plaintiff claims that the Eldorado Resorts, Inc failed to disclose material information about the "highly dilutive share issuance conducted in connection with (the) merger."
Furthermore, the plaintiff alleges that J.P. Morgan Securities was paid $11 million as Eldorado Resorts' sole financial adviser on the deal, and is providing Eldorado Resorts with $2.1 billion in debt financing for the merger, for which it can expect to receive even more than the $11 million it got for its advice.
Shares of Eldorado Resorts (NASDAQ:ERI) closed on December 2, 2016 at $15.20 per share.
Those who are current investors in NASDAQ:ERI shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com