Suit Accuses Brazil Fast Food of Freeze Out of Minority Shareholders in Buyout Bid

A merger agreement struck between Brazil Fast Food Corp. and a group of investors fails to meet the entire fairness standard, and it was reached without sufficient consideration paid to the interests of minority shareholders, according to a class action complaint (Charlot v. Brazil Fast Food Corp., Del. Ch., 11/7/13).

Shareholder Tamara Charlot filed the suit Nov. 7 in the Delaware Court of Chancery against the company and certain directors and officers of Brazil Fast Food, including Chief Executive Officer Ricardo Figueiredo Bomeny, claiming they breached their fiduciary duties to minority shareholders.

Brazil Fast Food Corp. operates and ...