Nathan's Famous faces shareholder lawsuits over Smithfield merger disclosures
NATH•Nathan's Famous and its board face two lawsuits seeking to block the Smithfield Foods merger, alleging misleading proxy disclosures. The company denies the claims but will voluntarily supplement its proxy statement before the Oct. 23 shareholder meeting.
1. Lawsuits challenge disclosures
Two shareholder lawsuits filed in New York state court on Sept. 30 seek to block Nathan's Famous' merger with Smithfield Foods. The suits allege misleading proxy disclosures and negligent misrepresentation, and seek unspecified damages or rescission if the merger closes.
2. Company plans supplement
Shareholders also delivered 15 demand letters alleging deficient disclosures and requesting additional information before the Oct. 23, 2026, shareholder meeting. Nathan's Famous denies the claims but said it will voluntarily supplement its proxy statement to address the allegations and reduce litigation risks.
