SOURCE: Brower Piven, A Professional Corporation

November 10, 2010 19:05 ET

Brower Piven Announces Class Action Lawsuit in Connection With the Proposed Management-Led Buyout of Fushi Copperweld, Inc.

STEVENSON, MD--(Marketwire - November 10, 2010) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the District of Nevada on behalf of shareholders of Fushi Copperweld, Inc. ("Fushi" or the "Company") (NASDAQ: FSIN). 

The complaint alleges claims that arise out Fushi's and its Board of Directors' efforts to complete a management-led buyout of Fushi through an unfair process at a grossly inadequate and unfair price of $11.50 per share ("Buyout"). Those seeking to acquire the Company include Li Fu ("Fu"), the Company's CEO, who with his affiliates controls over 29% of the Company's common stock, and Abax Global Capital (Hong Kong) Limited ("Abax"). The complaint further alleges that by pursuing the unlawful effort to squeeze out Fushi's public stockholders for grossly inadequate consideration, without a fair process (including without full and fair disclosure of all material information), the Company's Board of Directors and the other defendants have breached their fiduciary duties of loyalty, due care, independence, candor, good faith and fair dealing, and/or have aided and abetted such breaches. The complaint alleges that because defendants dominate and control the business and corporate affairs of Fushi and are in possession of non-public information concerning Fushi's business and future prospects, there exists an imbalance and disparity of knowledge and economic power between them and the public shareholders of Fushi that makes it unfair for them to pursue any proposed transaction that allows Fu and Abax and/or others to reap disproportionate benefits to the exclusion of maximizing stockholder value. According to the complaint, though the Company has formed a so-called "Special Committee" to evaluate the Buyout, the Special Committee is acting to appease Fu and Abax, who have no interest in a fair evaluation of the Buyout.

If you are a current owner of shares of Fushi Copperweld, Inc., you may obtain additional information about this lawsuit by contacting Brower Piven at www.browerpiven.com, by email at piven@browerpiven.com, by calling 410/415-6701, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6701
    Email Contact