Fortune Industries Inc. shares on Monday jumped as much as 285 percent from Friday’s closing price. The New York Stock Exchange found the move and an intense spike in trading volume so odd that it asked the company for answers.
Carter M. Fortune, 70, died Saturday at his home in Destin, Fla., the company said. The Fortune Industries chairman had been in the process of selling the public company to management in a deal valued at $30.5 million.
Mark Haagen had sought class-action status on behalf of certain shareholders, charging that the price offered in a proposed sale for each share in the company is too low. Haagen voluntarily dismissed the suit.
A shareholder of Indianapolis-based Fortune Industries Inc. has filed suit against the public company and its top executives, seeking class-action status on behalf of shareholders who want to stop a transaction that would take it private.
The company is set to be purchased by CEP Inc., a holding company led by Fortune Industries CEO Tena Mayberry and Chief Financial Officer Randy Butler. But several law firms are investigating the sale for potential unfairness on behalf of shareholders.