Focus Financial – Twersky Law Group, a highly regarded and reputable law firm based in New York, wishes to inform investors about a significant development in the form of a class action lawsuit against Focus Financial Partners, Inc. (“Focus Financial” or “the Company”) (NASDAQ: FOCS) and certain officers of the company. This lawsuit has been filed on behalf of a class (the “Class”) consisting of (1) all persons or entities that sold shares of Focus Financial common stock (NASDAQ: FOCS) from February 27, 2023 through the closing of the “take-private” acquisition of Focus Financial by Clayton, Dubilier & Rice, LLC (“CD&R”) on August 31, 2023 (the “Merger”), including investors who sold their shares of Focus Financial common stock into the Merger, and (2) all persons or entities that held Focus Financial common stock on the June 9, 2023 record date for the Merger who were entitled to vote on the Merger. Investors who acquired Focus Financial securities during this defined timeframe are strongly encouraged to participate in this case by contacting email@example.com. The deadline to file a motion for appointment of lead plaintiff is March 4, 2024.
The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased securities during the Class Period, the losses they sustained as a consequence of the misleading statements made by Defendants in violation of the federal securities laws.
ALLEGATIONS AGAINST FOCUS FINANCIAL
Focus Financial holds ownership interests in independent fiduciary wealth management firms providing investment and financial services to high and ultra-high net worth individuals and families. Prior to the Merger, private equity firm Stone Point Capital LLC (Stone Point) held approximately 20.6% of Focus Financials voting power and appointed two members to the Companys board of directors (the Board). The complaint alleges Defendants materially misrepresented the sale process leading up to the Merger by, among other things, omitting that they failed to adequately solicit potential strategic acquirors for Focus Financial. Contrary to Defendants public statements concerning the Merger, including in the definitive shareholder proxy statement filed on June 12, 2023, the sale process allegedly was not thorough because strategic buyers were not adequately canvassed by Defendants, the one strategic buyer that broke through was denied critical due diligence and its higher-priced merger proposal was rejected. As alleged in the complaint, Stone Point preferred a transaction with CD&R, as opposed to the strategic acquiror that was prepared to offer more to Focus shareholders, given Stone Points interest in obtaining a more lucrative equity rollover into a private equity firm. Moreover, while Defendants portrayed a robust arms-length negotiating process overseen by a purportedly independent and disinterested special committee of the Focus Board (the Special Committee), the Special Committee members were allegedly not disinterested nor independent given the personal financial windfall they received under the Merger. The complaint further alleges that the Special Committees financial advisor on the Merger, Goldman Sachs & Co. LLC, suffered from numerous conflicts of interest that served to limit the pool of potential acquirors considered by the Special Committee. As alleged in the complaint, the belated proxy supplement issued a mere six business days before the shareholder vote on the Merger also did not cure Defendants misstatements.
ABOUT FOCUS FINANCIAL
- Focus Financial Partners is a financial services company that provides partnership and support services to independent, fiduciary wealth management practices. The company was founded in 2006 and is headquartered in New York City.
- Focus Financial Partners works with independent wealth management firms by providing them with operational, marketing, and technology support. Essentially, it allows these independent firms to leverage the resources and scale of a larger organization while maintaining their independence.
- The company went public in 2018 and is listed on the NASDAQ under the ticker symbol “FOCS.” It has grown through a series of acquisitions, bringing various independent wealth management firms into its network.
JOIN THIS CASE
It is important to note that a class action lawsuit has already been filed in connection with these allegations. Therefore, for those individuals who suffered financial losses in their investments in Focus Financial during the Class Period, there is a limited opportunity to seek appointment as a lead plaintiff. This process entails requesting the Court to designate them as the primary representative on behalf of the entire class. The deadline for submitting such a request is March 4, 2024. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the potential for financial compensation does not mandate serving as a lead plaintiff.
Twersky Law Group, a distinguished legal firm renowned for its attorneys expertise in handling securities fraud class actions and shareholder derivative suits, who have a long-standing track record of successfully recovering significant sums of money for investors nationwide. With an unwavering commitment to seeking justice for their clients, the firm’s attorneys are resolute in pursuing fair compensation on behalf of those affected by alleged securities law violations. As with any legal matter, it is essential to understand that this announcement constitutes attorney advertising. Past case outcomes and results achieved do not guarantee similar outcomes in this particular case.