IF YOU HELD BLOUNT INTERNATIONAL, INC. (“BLOUNT”) COMMON STOCK CONTINUOUSLY FROM MARCH 4, 2016, THE RECORD DATE FOR VOTING ON THE PROPOSED ACQUISITION OF BLOUNT BY AMERICAN SECURITIES LLC AND P2 CAPITAL PARTNERS LLC, THROUGH APRIL 12, 2016, THE DATE THE TRANSACTION WAS COMPLETED, YOU COULD RECEIVE A PAYMENT FROM A CLASS ACTION SETTLEMENT. CERTAIN PERSONS ARE EXCLUDED FROM THE CLASS AS SET FORTH BELOW.
The Settlement will provide $3,059,000.00 in cash to pay claims of all Class Members. For an estimate of how much you could receive from this Settlement, see the discussion at FAQ 8. The Settlement resolves a lawsuit claiming that Defendants issued a materially false and misleading Proxy Statement (the “Proxy Statement”) in violation of §14(a) and §20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”), 15 U.S.C. §78n(a) and §78t(a), in connection with the proposed acquisition of Blount by American Securities LLC and P2 Capital Partners LLC. The Defendants deny they did anything wrong. The Settlement avoids the costs and risks associated with continued litigation (including the danger of no recovery), provides a monetary benefit to the Class, and releases the Defendants from liability.
The proposed Settlement should be compared to the risk of no recovery. The claims in this case involve numerous complex legal and factual issues that would require extensive and costly expert testimony. Among the many issues about which the parties do not agree are: (1) whether any of the Defendants violated the securities laws or otherwise engaged in any wrongdoing; and (2) the amount of damages (if any) that could be recovered at trial.
For the past two and a half years, Lead Plaintiffs’ counsel have not received payment for their work investigating the facts, prosecuting this Action, and negotiating the proposed Settlement on behalf of Lead Plaintiffs and the Class. Lead Plaintiffs’ counsel will ask the Court to award litigation expenses of no more than $400,000 from the Settlement Amount and an award of attorneys’ fees of 33.3% of the Settlement Amount. Lead Counsel also may apply for the reimbursement of Lead Plaintiffs’ expenses pursuant to 15 U.S.C. §78u-4(a)(4).
Your legal rights are affected whether you act or don’t act. Read the Notice carefully.