According to Omni’s complaint, Forward Air Corp.’s CEO, Tom Schmitt, initially explored renegotiation in response to the initial backlash following the deal’s announcement. Subsequently, Schmitt accused Omni of failing to provide requested data and argued that post-signing disclosures indicated that Omni’s performance would fall short of the previously disclosed levels.
Omni firmly believes that Forward Air Corp.’s threat to terminate the transaction is not enforceable under their binding contractual agreement. The company is confident that there are no legal impediments to closing the deal.
Omni’s CEO, J.J. Schickel, expressed this confidence in an open letter to shareholders, emphasizing that Forward Air Corp.’s actions appear to be an attempt to terminate the merger agreement without a valid legal or factual basis, seemingly to safeguard the positions of Schmitt and the company’s board.
Allegations Galore
Omni’s complaint against Forward Air Corp. paints a picture of shifting positions and questionable intentions. The company alleges that Schmitt vacillated on the deal’s closure, even acknowledging concerns that he and the board could face dismissal if the deal proceeded.
