TapouT investors Bert Bedrosian and Kenneth Stickney are suing the clothing and merchandise company over a September transaction in which the brand was acquired by Authentic Brands Group for significantly less than what the company was worth, according to the plaintiffs. Bedrosian and Stickney are claiming that the board managers -- including onetime Tapout President Marc Kreiner and co-founder Daniel “Punkass” Caldwell -- ignored their fiduciary duties to investors and acted unconscionably in selling the brand to ABG.
Because many pertinent monetary figures have been redacted from the publicly available version of the complaint, Sherdog was unable to report the exact amounts at issue in the sale and the suit. After ignoring two offers from outside parties to purchase the brand, the plaintiffs claim, the defendants misled investors regarding the nature of the ABG transaction, and the compensation the plaintiffs will receive for the sale is “far less than they ever agreed to.” The plaintiffs are asking that the transaction be rescinded and that they be justly compensated for the damages inflicted upon them.
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