SAN DIEGO--(BUSINESS WIRE)--Dec. 17, 1999--Milberg Weiss) today announced that a class action has been commenced on behalf of the holders of American Depository Shares and holders of Amway Japan Limited (``Amway'')) against Amway and its directors arising out of defendants' efforts to complete a management-led buyout of Amway at a grossly inadequate and unfair price and to provide certain insiders and directors with preferential treatment at the expense of, and which is unfair to, the public shareholders.
On November 15, 1999, Amway announced that its General Counsel, Secretary and director, Gary Sumihiro, its Chairman and director Richard DeVos, Jr. and its Vice Chairman and director Stephen Van Andel together with N.A.J. Co. Ltd., had submitted an offer to the Amway Board (which is controlled by Stephen Van Andel, Richard DeVos, Jr. and Gary Sumihiro (collectively, the ``Management Buyers'') who control approximately 76% of Amway's stock) to purchase the outstanding shares of Amway for $7.07 per share.
In pursuing the unlawful plan to cash out Amway's public stockholders for grossly inadequate consideration, each of the defendants violated the applicable laws by directly breaching and/or aiding the other defendants' breaches of their fiduciary duties of loyalty, due care, independence and good faith and fair dealing. In fact, instead of attempting to obtain the highest price reasonably available for Amway shareholders, the Individual Defendants spent substantial effort tailoring the structural terms of the Acquisition to meet the specific needs of the Management Buyers.
The plaintiffs are represented by several law firms, including Milberg Weiss Bershad Hynes & Lerach LLP, who have expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.