Levi & Korsinsky, LLP announces it has filed an amended complaint on behalf of Patriot National, Inc. (NYSE: PN) shareholders who purchased or otherwise acquired Patriot shares since its initial public offering on January 16, 2015.
The complaint alleges that Steven M. Mariano—Chairman, President, CEO, Board member, and majority stockholder of the Company—has engaged in a series of behaviors to benefit himself and to the detriment of shareholders, often without the knowledge or approval of other Board members. In particular, the complaint alleges that, among other allegations, Mariano: (1) engaged in a series of post-IPO related-party transactions to enrich himself and other insiders; (2) arranged a private placement for $50 million of Company stock to a group of hedge funds in order to bail out himself and his other entities from a personal liquidity crisis; (3) renegotiated the private placement to provide the Company with no consideration after the market punished the disloyalty of said placement while still sending $30 million to himself; and (4) secretly engaged a second parallel set of advisors in the Company’s name without Board knowledge or approval to shop the Company in search of the best deal for himself; and (5) forced the Board to approve a leveraged recapitalization, over the objection of an independent director, who had resigned in protest. These disloyal acts have cost the Company and its minority stockholders hundreds of millions of dollars.
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