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Archon investors file suit over preferred stock redemption
By Lisa Kerner
Charlotte, N.C., Aug. 28 - Archon Corp. investors led by D.E. Shaw Laminar Portfolios, LLC and including Mercury Real Estate Securities Fund LP and Black Horse Capital LP filed suit in Nevada against the company on Aug. 27 challenging the redemption of its preferred stock on Aug. 31 priced at $5.241 per share.
The shareholders are seeking damages as the result of what they believe is a breach of the certificate of designation of the preferred stock, dated Sept. 30, 1993. Laminar's suit is included as part of a schedule 13D filing with the Securities and Exchange Commission.
In addition, the shareholders want the dividends to be "properly" calculated and compounded per the terms of the certificate in an amount no less than $7,235,351 up through and including the date of final judgment.
Mercury, in a previous SEC filing, alleged the accrued dividends on and liquidation preference of the preferred stock had been miscalculated and misrepresented by the company in Archon's public filings.
Archon is a Las Vegas casino operator.
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