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Harman

Settlement of Baum v. Harman International Industries, Incorporated, et al.,
No. 3:17-cv-00246-RNC

The parties have reached a settlement of this action, pending in the United States District Court for the District of Connecticut.  The settlement provides for the payment of $28,000,000 for the benefit of eligible Class Members.  Lead Plaintiff Patricia B. Baum alleged that Defendants violated §§14(a) and 20(a) of the Securities Exchange Act of 1934 by making materially misleading statements and omissions in the Definitive Proxy Statement on Schedule 14A.  More specifically, Lead Plaintiff alleged that Defendants submitted a materially misleading proxy to Harman International Industries, Incorporated (“Harman” or the “Company”) stockholders in connection with Samsung’s acquisition of Harman, including as to the following issues: (a) Lead Plaintiff alleged certain representations about the projections in the proxy contradicted Harman management’s earlier statements to analysts about the same set of numbers; and (b) Lead Plaintiff alleged that the proxy failed to disclose that J.P. Morgan Asset Management – a J.P. Morgan affiliate – served as investment manager for Samsung while J.P. Morgan was advising Harman in connection with Samsung’s acquisition of Harman.

The Class consists of all Persons who purchased, sold, or held Harman common stock at any time during the period from and including January 10, 2017, the record date, through and including March 12, 2017, the date the Merger closed.  Excluded from the Class are: (i) Defendants and members of their immediate families; (ii) the officers and directors of the Company at all relevant times and members of their immediate families; (iii) any entity in which Defendants have or had a controlling interest; and (iv) the legal representatives, heirs, successors or assigns of each Defendant and each officer and director of the Company.  Also excluded from the Class are those Persons who properly excluded themselves by timely and validly requesting exclusion from the Class pursuant to the Notice sent to Class Members pursuant to the Preliminary Approval Order.

The settlement was approved by the Court on November 10, 2022.

If you have any questions about the settlement or the litigation, please contact the Shareholder Relations Department at 1-800-449-4900.

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