Key developments for Restaurant Technologies, Inc.
Federal Judge Grants Preliminary Approval to $5.5 Million Settlement in Favor of Original and Minority Shareholders in Restaurant Technologies, Inc
A federal judge has granted preliminary approval to a $5.5 million settlement in favor of original and minority shareholders in fast-growing Restaurant Technologies, Inc. who charged that they were shorted by a Boston private equity company and RTI senior managers during a 2009 recapitalization of the company. The settlement, reached recently, requires RTI to compensate the former shareholders and may include additional payments in the event of the company’s sale. The case was certified earlier as a class-action lawsuit on behalf of the founders and about 260 individual shareholders who invested early in the company’s 12-year life. According to the complaint against RTI, the majority owners and management used a 2009 recapitalization of the company and a low valuation of the common stock to buy out the minority shareholders cheaply and capture the higher value of the company for themselves. A hearing on the fairness of the proposed settlement has been set for Nov. 29 before Chief U.S. District Judge Michael Davis.