PHILADELPHIA — A Renewable Stock Energy stockholder alleges the company's board failed to disclose proper information with the Securities and Exchange Commission (SEC) regarding its merger with Chevron.
Jeffrey D Justice, III filed a complaint April 1 in the U.S. District Court for the Eastern District of Pennsylvania against Renewable Energy Group Inc., Jeffrey Stroburg, Randolph L. Howard Cynthia Warner, Walter Berger, James Borel and others alleging violation of the Securities Exchange Act.
Justice, according to his complaint, is the owner of common stock in Renewable Energy which in February entered into a merger agreement to be acquired by Chevron Corporation. Justice claims that under the merger agreement, stockholders would receive $61.50 in cash per share.
He further claims that a March 2022 proxy statement filed with the SEC by the defendants failed to disclose financial analyses conducted by an outside firm, Guggenheim Securities, including the valuation methods used for company's financial projections. Specifically, Justice alleges the defendants' statement failed to disclose terminal values used by Guggenheim, price targets, appropriate dates and the sources of price targets used by Guggenheim.
Justice seeks monetary relief, trial by jury and all other just relief. He is represented by Joshua Grabar of The Grabar Law Office in Philadelphia.
U.S. District Court for the Eastern District of Pennsylvania case number 2:22-CV-01253-HB