Skip to Main Content
SUBMIT A TIP RECEIVE DAILY NEWS
Menu AdvisorHub
  • News
      • Latest News
          • James Gorman, Chairman and CEO Morgan StanleyMorgan Stanley’s Gorman Tops Dimon as Best-Paid Big Bank CEO
          • Reading financial newsThis Week’s Top Stories: Morgan Stanley Boots Texas Broker, Merrill’s 2020 Growth Numbers and More
          • RIA DealsRIA Deal-making Hits Record Despite Pandemic
          • Advisor MoneyWells Fargo Recoups $2.5 Million from New Jersey Duo
        • Close
      • Advisor Moves
          • Boca Raton, FloridaRockefeller Lures Two Florida Teams with $9.8 Mln Revenue
          • Morgan Stanley, UBS Advisor movesMorgan Stanley Rehires $3.3-Mln UBS Team in North Carolina
          • Lars Olson of Sanctuary Wealth Partners in Marion, OHSanctuary Hires $435-Mln Merrill Team, Snowden Lures Another from Retirement
          • Stifel Investment CompanyStifel Hires 33-Year Brokerage Vet from Jefferies in Dallas
        • Close
      • Enforcement
          • Advisor MoneyWells Fargo Recoups $2.5 Million from New Jersey Duo
          • Businessman in prison, fraudWells Fargo Claws Back $3 Million from Jailed Ex-Broker
          • Finra signFinra Fines, Supends Ex-Ameriprise Broker Who Flipped ‘A’ Shares
          • Barred from the securities industry.SEC Puts Nail in Ex-Morgan Stanley Broker’s Career Coffin
        • Close
      • Markets
        • `Nothing Safer Than Cash’: Tech Rout Puts Silicon Valley on Edge
        • ‘Any News Is Bad News’ as Earnings Fail to Save Equity Bulls
        • ‘50 Cent’ Profited From Volatility Jump, Wells Fargo Says
        • ‘Beaten Down’ ETF Is a Way to Play Inverted Curve, BofA Says
        • Close
      • Opinion
          • Opinion-How-Will-The-Coronavirus-Affect-The-Stock-Market-Opinion: Coronavirus – What Advisors Need to Know
          • opinion-investors-conquered-fees-next-up-is-their-own-behaviorOpinion: Investors Conquered Fees but Not Their Own Behavior
          • Investor-Confidence-In-Stocks-Rightly-Declines-Opinion-772x485Investor Confidence in Stocks Rightly Declines: Opinion
          • Opinion-Schwabs-Zero-Commission-Decision-Challenges-Its-Ria-ClientsOpinion: Schwab’s Zero Commission Decision Challenges Its RIA Clients
        • Close
      • Fintech News
          • System outageMerrill Systems Hiccuped on Thursday as Stocks Slid
          • 7 dollar rolls‘The Rock’ Invests in Finance App Acorns, and New Users Get $7
          • TraderHigh-Frequency Traders Love Business With Robinhood
          • EtheriumJay Z, Charles Schwab-Backed Ethereum App Opens Doors to Public
        • Close
      • From the Publisher
          • 2021 PredictionsFrom the Publisher: Sirianni’s Predictions for 2021
          • Josh Rogers – 772×485Seven Questions with Tony Sirianni: Josh Rogers, Founder and CEO, Arete Wealth
          • Phil Hildebrandt — 772×485Seven Questions with Tony Sirianni: Phil Hildebrandt, Principal, CEO of Segall Bryant & Hamill
          • Christian Hyldahl, President of Varium Investment Partners-772×485An AdvisorHub Interview with Christian Hyldahl, President of Varium Investment Partners
          • John Peluso – 772×485Timely interview with John Peluso and AdvisorHub CEO Tony Sirianni
          • Louis Dworsky Coronacrash Interview-772×485Coronacrash Update: Hayden Royal’s Louis Dworsky & Tony Sirianni
          • Stratos_Jeff pic.jpg-772×485Coronacrash Update: Stratos Wealth Partners’ Jeff Concepcion & Tony Sirianni
          • coronacrash ben harrison – 772×485Coronacrash Update: BNY Mellon | Pershing’s Ben Harrison & Tony Sirianni
        • Close
    • Close
  • Deals & Comp
  • Recruiting Wire
  • Breakaway Center
  • Resources
    • resources-home-menuResources Home
    • PRACTICE MANAGEMENT RESOURCESPractice Management Resources
    • Transition ResourcesTransition Resources
    • Fintech ResourcesFintech Resources
    • menu fintechFintech Product Directory
    • Menu-Institute-772×485Institute
    • Boutique Wealth AdvisorsBoutique
    • EventsEvents
    • Asset Manager Hub
    • Close
  • AdvisorHub TV
  • Podcasts
  • RIA Center
  • Virtual Summit
close X
March 19, 2020

TD Ameritrade Shareholder Sues to Stop Merger with Schwab

by Jed Horowitz
|
News
|
Charles Schwab, TD Ameritrade
|
No Comments
Share This
SUBMIT A TIP
td-ameritrade-shareholder-sues-to-stop-merger-with-schwab
Alexander Kirch / EyeEm / Getty Images

A TD Ameritrade Holding Corp. shareholder on Wednesday filed a putative class-action lawsuit attempting to derail the discount brokerage firm’s acquisition by Charles Schwab Corp.

The suit, filed in U.S. District Court in Delaware, alleged that the companies’ March 2020 merger registration statement “omits material information” about the projected earnings and cashflows of the combined firm, violating federal securities laws by withholding proper disclosures.

It asks the court to temporarily and permanently enjoin completion of the merger, or rescind it if consummated, and to order corrections in the registration statement and an award of attorneys’ and expert witness’ fees as well as litigation costs.

Such suits have become common in proposed mergers, with at least four being filed last year in an abortive attempt to halt Advisor Group’s takeover of Ladenburg Thalmann Financial Services. If courts don’t dismiss the claims in what have become known as “moot suits,” plaintiffs often agree to dismiss them if document modifications are made and attorneys’ fee agreements are reached, according to a blog from Kevin LaCroix, a directors-and-officers insurance lawyer at Ohio-based RT Specialty.

The litigation to halt the Schwab-TD deal was orchestrated by Richard Maniskas, a Berwyn Pa., lawyer, on behalf of named plaintiff Michael Kent and “hundreds, if not thousands” of other TD Ameritrade shareholders, according to the lawsuit, which also names TD Ameritrade’s board members as defendants.

Neither Maniskas, nor Delaware-based lawyers Brian Long and Gina Serra who filed the suit—with Maniskas listed as “of counsel,” replied to written and oral requests for comment.

TD Ameritrade spokesman Joseph Giannone said the firm as a matter of policy does not comment on litigation. Charles Schwab spokesman Glen Mathison also declined to comment.

The issue pressing harder against the proposed all-stock mega-merger is the coronavirus crisis that has slowed down government review of the transaction and the market collapse that has pummeled the value of shares of both companies.

Schwab and TD Ameritrade disclosed in January that the Department of Justice had filed a second request for data to help it analyze the proposed deal, a time-consuming process even before the coronavirus work-routine disruptions at the firms and the regulator.

When the deal was announced on November 25, Schwab said it would exchange 1.0837 of its shares for every TD Ameritrade share, valuing the target at $26 billion. Schwab shares, which were trading at $49.31 at the time, were changing hands on Thursday afternoon about 35% lower at $32.30, while TD Ameritrade’s were off about 39% at $31.68.

The firms have not changed their expectations that the deal will close in the second half of this year, their spokesmen said.

A New York judge in January dismissed a lawsuit seeking to block the merger that was filed by Franklin Tsung, an individual shareholder and registered investment advisor. Tsung’s father founded a firm whose customer relationship management software is offered by TD Ameritrade to RIAs.

Like this article? Let AdvisorHub come to you!  Sign up

Share This
No Comments

Leave a Reply Cancel reply

Tony Sirianni Podcast Banner

CORONACRASH NEWS

  • Merrill Touts Success of Growth Strategy in Pandemic-Afflicted Year

    Merrill Touts Success of Growth Strategy in Pandemic-Afflicted Year

    Jan 19, 2021
  • Raymond James Slashes CEO Pay 17% in Turbulent Year

    Raymond James Slashes CEO Pay 17% in Turbulent Year

    Jan 8, 2021
  • Solomon Sees Vaccine Bringing Goldman Staff Back by End of Year

    Solomon Sees Vaccine Bringing Goldman Staff Back by End of Year

    Jan 5, 2021
  • J.P. Morgan Bank Broker Cleared of Coronavirus Crash Claim

    J.P. Morgan Bank Broker Cleared of Coronavirus Crash Claim

    Dec 4, 2020
  • Edward Jones Broker Count Up 5%, Firm Pauses Branch Growth

    Edward Jones Broker Count Up 5%, Firm Pauses Branch Growth

    Nov 5, 2020

NEWS

  • Morgan Stanley’s Gorman Tops Dimon as Best-Paid Big Bank CEO

    Morgan Stanley’s Gorman Tops Dimon as Best-Paid Big Bank CEO

    Jan 23, 2021
  • This Week’s Top Stories: Morgan Stanley Boots Texas Broker, Merrill’s 2020 Growth Numbers and More

    This Week’s Top Stories: Morgan Stanley Boots Texas Broker, Merrill’s 2020 Growth Numbers and More

    Jan 23, 2021
  • RIA Deal-making Hits Record Despite Pandemic

    RIA Deal-making Hits Record Despite Pandemic

    Jan 22, 2021
  • Wells Fargo Recoups $2.5 Million from New Jersey Duo

    Wells Fargo Recoups $2.5 Million from New Jersey Duo

    Jan 22, 2021
  • Former Wells Client Associate Files Overtime Class-Action Suit

    Former Wells Client Associate Files Overtime Class-Action Suit

    Jan 22, 2021

FINANCIAL INDUSTRY PODCASTS

AllIndependenceSuccess
The must listen-to podcast for financial advisors by Tony Sirianni. Guests to include:
-Ron Kruszewski
-Shirl Penney
-Penny Pennington
-Eric Clarke
and many more
Michael Kitces and Carl Richards discuss financial advising topics.
Suzanne Siracuse asks the questions nobody else asks, as influencers and interviewer collide in her new and truly unique podcast series The Big Reveal.
The “new advice value stack,” and how firms can use it to help maximize their own value propositions for their clients.
The Brighthouse Financial Insights Panel is a group of leading, independent experts providing powerful insights into the big challenges facing you and your clients.
Equipping independent financial advisors with the tips, insights, and knowledge needed to evolve in every aspect of his or her life
Powering Independence Podcast, insights and ideas for RIAs, presented by Dynasty Financial Partners. A podcast dedicated to presenting fresh ideas and best practices for the wealth management industry.
As an industry expert, Frank LaRosa provides guidance and advice on a host of topics from recruiting and transitions, succession planning, practice management, M&A and more.
Our goal is to unlock the challenges to reveal the opportunities and what it means to provide advice in the 21st century.
Our webcast is dedicated to helping our viewers get real insights by avoiding the cognitive dissonance of today’s media outlets and biased editorial filters.
Go behind the scenes with registered investment advisors and other related independent business model experts
As a nationally recognized recruiter and consultant to financial advisors, Mindy Diamond has unmatched experience in introducing advisors to the independent space.
The must listen-to podcast for investors, venture capitalists and financial advisors, with Tony Sirianni and Paul Dietrich.
An Introduction to Independence: 5 Key Episodes to Jumpstart Your Knowledgebase
Jay is an investment strategist, CERTIFIED FINANCIAL PLANNER™ and business consultant to financial advisors.
In this podcast business owners, entrepreneurs and executives reveal their top tips for success.
We interview top financial advisors and visionary voices to bring you the strategies, tips, and tools you need to make a difference in people’s lives.
A financial literacy and commentary show that features a number of investors, financial experts, professional athletes, business owners and more.
Join Sound Financial Group CEO Paul Adams and President Cory Shepherd every week, as they help you Design and Build a Good Life™.
The Kuderna Podcast, focusing on wealth in it's original meaning- a state of well being.
Timeless wisdom, actionable information you can use right now to make smarter investment decisions.
Made for and dedicated to those folks serious about their financial plan.
Latest News 
Advisor Moves 
Enforcement 
Opinion 
  • About Us
  • Contact Us
  • Advertise
  • Events
  • Careers

 get our newsletter

Industry focused content and breaking news.

SIGN UP

Contact Us

EMAIL US
1707 Post Oak Blvd.
#484
Houston, TX 77056

© 2021 AdvisorHub
  • |Terms of Use
  • |Privacy Policy
  • |Advertise
  • |Careers
  • Facebook
  • Linkedin
  • Twitter

Back to top