Levi & Korsinsky Announces $9.5 Million Alloy Steel Merger Settlement

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Published February 2, 2024

In the class action captioned Karsan Value Funds v. Kostecki Brokerage Pty Ltd., C.A. No. 2021-0899-LWW (Del. Ch),  plaintiffs Karsan Value Funds and Robert Gruters, on behalf of themselves and a class comprised of all unaffiliated stockholders of Alloy Steel, Inc. as of September 17, 2021, have reached a proposed settlement with defendants Kostecki Brokerage Pty Ltd., Maria Kostecki, and Steven Kostecki.

On May 18, 2021, Defendants Maria Kostecki and Steven Kostecki, holders of approximately 65% of Alloy Steel’s common stock at that time, proposed a going-private transaction for $2.35 per share. After negotiations, the Kosteckis raised their offer to $2.55 per share. The merger closed on September 17, 2021, entitling the company’s stockholders, excluding the Kostecki family and its affiliated entities, to $2.55 per share in cash per share.

If approved, the settlement will provide a gross recovery of $9,500,000.00 USD in cash for the class, and will resolve all claims in the action. Before subtracting attorneys’ fees, expenses, and administration costs, the settlement would provide an additional $1.90 per share of Alloy Steel common stock held as the date of the merger, or a roughly 75% increase over and above the original $2.55 per share merger consideration.

Levi & Korsinsky are class counsel for plaintiffs in the action. The settlement hearing has been scheduled in the Court of Chancery for the State of Delaware for April 4, 2024. More information may be found here: https://www.alloysteelstockholdersettlement.com/