Tile Shop Halts Stock Deregistration As It Fights Investor Suits

Offit Kurman Attorney Featured on Law360

As Published in Law360 

By Rose Krebs | November 12, 2019

Tile Shop Holdings Inc. said Monday that it has halted the process to deregister its stock per an order from the Delaware Chancery Court after investors filed derivative suits last week seeking to thwart what they contend is a takeover attempt led by the company's former CEO.

Tile Shop said it had intended to file forms with the U.S. Securities and Exchange Commission this week to move forward with plans announced last month to delist its common stock from Nasdaq and deregister its stock under SEC regulations, meaning it would not have to file periodic financial reports with the regulatory agency.

Last week, two investment groups K-Bar Holdings LLC and Wynnefield Capital Inc. filed derivative suits asserting that the company's founder and former CEO Robert A. Rucker, who sits on the company’s board, and certain other directors are engaged in a scheme to take control of the company by purchasing stock without paying a fair price.

K-Bar asked the court to temporarily bar the directors from purchasing more company stock and halt the deregistration process. A hearing was scheduled for late Friday afternoon, with no order officially posted as of Tuesday afternoon. Tile Shop said Monday that it was taking measures to meet a temporary court order.


Continue reading on Law360>>


Offit Kurman is one of the fastest-growing, full-service law firms in the United States. With over 230 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well-positioned to meet dynamic businesses' needs and the people who own and operate them. Our offices serve individual and corporate clients in South Carolina, North Carolina, Virginia, Washington, DC, Maryland, Delaware, Pennsylvania, New Jersey, and New York.

At Offit Kurman, we are our clients' most trusted legal advisors, professionals who help maximize and protect business value, and personal wealth. In every interaction, we consistently maintain our clients' confidence by remaining focused on furthering their objectives and efficiently achieving their goals. Offit Kurman represents its clients the better way.

Whatever and wherever your industry, Offit Kurman is the better way to protect your business, preserve your family's wealth, and resolve your most challenging legal conflicts. At Offit Kurman, we distinguish ourselves by the quality and breadth of our legal services — as well as our unique operational structure, which encourages a culture of collaboration and entrepreneurialism. The same approach that makes our firm attractive to legal practitioners also gives clients access to experienced counsel in every area of the law.

Subscribe and follow us on our Blog, Facebook, Twitter, Instagram, YouTube, and LinkedIn pages. You can also sign up to receive LawMatters, Offit Kurman’s monthly newsletter covering a diverse selection of legal and corporate thought leadership content.