Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into XpresSpa Group, Inc. (NasdaqCM: XSPA).
In August 2016, the Company, formerly named FORM Holdings Corp., voted to merge with XpresSpa Holdings, LLC, changing its name to XpresSpa Group, Inc. in January 2018. In November 2017, minority holders of XpresSpa, who were also the founders of the XpresSpa brand, filed suit in federal court against the Company and certain of its executives and/or directors (“Controlling Group”) based on allegations of undue influence, deception, and kickbacks used to effect the merger.
On August 6, 2018 the Court denied the defendants’ motion to dismiss the case in part, ruling that the claims based on the Controlling Group’s failure to disclose the nature of the relationship between the members of the group and certain quid pro quo arrangements, and that the Controlling group overstated the value of the Form securities offered as consideration for the merger, could proceed.
KSF’s investigation is focusing on whether XpresSpa’s officers and/or directors breached their fiduciary duties to XpresSpa’s shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of XpresSpa shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (firstname.lastname@example.org), or click here.