MINNEAPOLIS, Oct. 31, 2003 (PRIMEZONE) -- Corn farmers in southwestern Minnesota finally received some good news. It has been a rough few years; not only have they endured a scorching crop season, but their key life savings -- shared ownership in Marshall-based Minnesota Corn Processors (MCP) -- had been sold out. The official buyer was Archer Daniels Midland (NYSE:ADM); but the shareholders believed that they were actually sold-out by their own Corporate Officers in an unfair deal that siphoned millions to the officers -- money that should have gone to the shareholders. Last April, a group of farmers who were former MCP shareholders initiated a class action lawsuit charging former CEO Dan Thompson, and other Executives at MCP, with promoting the company sale to ADM for their own personal gain and at the expense of the shareholders.
In a Ruling released yesterday, the Honorable John Rodenberg, Fifth Judicial District in the State of Minnesota, denied the former MCP Officers' efforts to dismiss the Class Action Complaint. The 38-page Order determined that valid legal claims had been presented and the case could move forward.
The Class Action Complaint arose out of the merger of ADM and MCP in the summer of 2002. According to the Court's decision, the shareholders "have directly challenged the fairness of the merger process. ... alleging that Defendants breached their fiduciary duties because Defendants had interests in direct conflict with shareholders ..."
The Complaint also alleges that the Officers created an unfair merger process in their negotiations with ADM, resulting in Officers agreeing to a lower per share price in exchange for millions of dollars channeling to the Officers. ADM is not a named defendant, but agreed to indemnify the former MCP Officers as part of the merger.
According to attorney, Robert Moilanen, "This thoughtful decision sends a strong message to corporate officers -- As a corporate officer, your first obligation is to your shareholders." Moilanen, with the Minneapolis law firm Zimmerman Reed, represents the former shareholders in this action. "The heart of this decision is that those who are victimized by self-serving corporate practices will have their day in court."
The Class lawsuit has five named class representatives. Vin Bot of Minneota, Minnesota, a class representative and corn farmer, responded "I couldn't be more pleased. I am delighted that this story will be told to a jury in Minnesota." In Clarkfield, Minnesota, class representative, Douglas Albin, expressed his relief with the decision, "We now have a chance for a fair outcome for the MCP shareholders; this court ruling restores your faith in the process. There will be accountability."
To view a copy of the Complaint or the Court's decision, go to www.zimmreed.com. For further information, contact either Bob Moilanen or Carolyn Anderson at 612.341.0400.