Foodarama Shareholder Litigation

This case was brought as a class action. Plaintiff alleges that Defendants breached their fiduciary duties to, or aided and abetted the breach of fiduciary duties to, the public shareholders of Foodarama common stock in connection with the Going-Private Transaction. Plaintiff further alleges that Defendants violated the provisions of the New Jersey Shareholders' Protection Act. Plaintiff challenged the fairness of the price paid to the public shareholders and the process employed to effect the Going-Private Transaction, and alleged that Defendants' public statements regarding the Going-Private Transaction omitted and misrepresented information necessary for Foodarama's public shareholders to decide whether to tender their shares.

Defendants contend that the allegations are meritless. They contend that they did not violate their duties to the public shareholders and did not violate the New Jersey Shareholders' Protection Act. The Defendants further contend that their public statements and descriptions of the Going-Private Transaction included all information that reasonable investors would consider material or important.

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