An investor, who currently holds shares of American Finance Trust, Inc. (NASDAQ: AFIN), filed a lawsuit against the takeover of American Finance Trust, Inc.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ: AFIN stockholders by agreeing to sell American Finance Trust, Inc. cheaply via an unfair process.
On Aug. 1, 2018, American Finance Trust, Inc. ( AFIN ) announced that its board of directors recommends that AFIN's stockholders reject the latest unsolicited mini-tender offer launched by MacKenzie Realty Capital, Inc. and certain of its affiliates (collectively, MacKenzie ) to purchase up to 400,000 shares of each class of AFIN's common stock.
However, plaintiff claims that the proposed consideration NASDAQ: AFIN shareholders will receive is grossly inadequate and undervalues American Finance Trust.
In addition, the plaintiff alleges that the process is also unfair NASDAQ: AFIN stockholders.