The proposed merger of equals between Westar and Great Plains Energy faces another lawsuit that claims the companies withheld or misrepresented information necessary for shareholders to vote on the deal.
Great Plains Energy, Inc. shareholder Stephen Bushansky filed a suit last week in U.S. District Court for the Western District of Missouri. It’s similar to one filed last month in Kansas by Westar shareholder David Pill.
Both class-action suits aim to stop shareholder votes and progress on the merger until information is shared. Bushansky’s complaint claims Great Plains omitted or misrepresented information about the financial positions of the two companies in the $14 billion deal.
“The failure to adequately disclose such material information constitutes a violation of the above-referenced sections of the Exchange Act, as Great Plains stockholders need such information to cast a fully-informed vote in connection with the Proposed Transaction,” the lawsuit says.
Westar spokeswoman Gina Penzig and Great Plains spokesman Jeremy McNeive said they could not comment on pending litigation.
Penzig said lawsuits had become common in merger transactions.
Bushansky’s complaint demands a jury trial and asks that the court stop Westar and Great Plains from moving forward on the deal unless they provide more financial information.
Westar and Great Plains shareholders are scheduled to vote on the deal Nov. 21.
The two companies announced a proposal to merge as equals in July after the Kansas Corporation Commission shot down Great Plains’ bid to purchase Westar in April.