Harman Int’l Can’t Kill Securities Suit Over Samsung Acquisition

Harman Int’l Indus., Inc. failed to shake off a proposed shareholder class action alleging the company issued a false and misleading proxy statement to solicit support for its acquisition by Samsung Electronics Co.

The named plaintiff, Patricia Baum, may proceed with claims that the proxy was misleading as to the reason that Harman revised its financial projections and as to a financial adviser’s potential conflict of interest, the U.S. District Court for the District of Connecticut said.

The class alleges that Harman’s corporate board sought to downplay its value to make the Samsung acquisition seem fair to shareholders.

As a ...