$9.5 Million Settlement for Alloy Steel Shareholders

On December 11, 2023, the parties in the action captioned Karsan Value Funds v. Kostecki Brokerage Pty Ltd., C.A. No. 2021-0899-LWW (Del. Ch.) entered into a stipulation of settlement. The settlement, which is subject to court approval, is expected to provide a significant benefit to the former minority shareholders of Alloy Steel International Inc. The settlement provides for a payment of $9.5 million to eligible class members, representing an additional $2 per share for eligible class members. Lead plaintiffs Karsan Value Funds and Robert Gruters filed an action alleging that the Alloy Steel’s board and the company’s controlling shareholders did not properly discharge their fiduciary duties in connection with a 2021 going-private transaction whereby Kostecki Brokerage, Alloy Steel’s controlling shareholder, agreed to purchase all outstanding Alloy Steel shares for $2.55 per share consideration. The Delaware Court of Chancery will hold a hearing on April 4, 2024 to approve the settlement.