High-Stakes Legal Battle Unfolds in Delaware
Global freight powerhouse Omni Logistics Inc. has launched a legal offensive, suing Forward Air Corp. in Delaware’s Court of Chancery. The lawsuit, filed late Tuesday, seeks to compel Forward Air Corp. to follow through on a $3.2 billion agreement to acquire Omni. Omni alleges that Forward Air Corp. breached the deal due to adverse investor and market reactions.
A Rocky Road to the Courthouse
This legal showdown follows a recent series of twists and turns in the deal’s journey. In October, a Tennessee judge lifted a temporary restraining order that had initially blocked the deal, citing objections from a stockholder lawsuit. The stockholder suit had raised concerns about the deal’s approval without a stockholder vote.
Omni’s Claims and Accusations
Omni, based in Texas and privately owned, asserts that Forward Air Corp. initially committed to the merger and the completion of the cash and stock agreement, which was sealed on August 10. Importantly, Forward Air Corp. had agreed to proceed without the need for a stockholder vote. However, the company allegedly had a change of heart after experiencing a significant drop in its stock price and facing criticism from hedge fund investors.
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