On October 27, 2011, the court granted final approval of an aggregate settlement of $9,992,500 with Citibank, N.A. (CBNA) to settle the claims asserts against it in this shareholder transaction case. Labaton Sucharow served as co-lead counsel.
The case stems from the sale of assets of Student Loan Corp. (SLC) to, among others, its majority owner, CBNA and then sale of the company, including, it remaining assets, to Discover Bank. Shareholders alleged that the deal was unfair because the $30 per share offer price was inadequate. The complaint asserted that CBNA had desperately needed to raise cash and divest non-core banking assets in the short term, and therefore agreed to sell the company for substantially less than it was worth, while selectively choosing SLC assets that it could sell to private investors. The complaint further alleged that the buyout had been approved by SLC's Board of Directors through a defective process that failed to properly protect the interests of SLC shareholders, and that the proxy disclosures related to the buyout were materially misleading and deficient.
The case is In re The Student Loan Corporation Litigation, No. 5832-VCL. Labaton Sucharow represented co-lead plaintiff, Electrical Workers Pension Fund Local 103 IBEW. Defendant is Citibank N.A.