Midas Inc., the operator of car service centers, won dismissal of a shareholder lawsuit over tire supplier TBC Corp.’s acquisition of the company.
U.S. District Judge Edmond Chang in Chicago said shareholder Jacob Scheiner didn’t show that Midas and other defendants acted with an intent to deceive investors or had reckless disregard of the risk that its statements were false.
Scheiner claimed that Midas failed to disclose information about competing bidders, preventing shareholders from making an informed decision about supporting the deal.
Midas, which has more than 2,250 franchised, licensed and company-owned namesake stores in 14 countries, announced in March that it agreed to be acquired by tire TBC for about $173 million. The cash offer was $11.50 a share.
The case is Scheiner v. Midas, 12-2653, U.S. District Court, Northern District of Illinois (Chicago).