San Francisco, CA: (Feb-23-08) A class action lawsuit was brought against MTC Technologies Inc. by shareholder Superior Partners over the company's agreement to be acquired by a unit of BAE Systems Inc. The suit claimed that MTC directors breached their fiduciary duties to the company's shareholders, and that BAE Systems aided and abetted MTC directors in breach of their fiduciary duties, according to a filing with the Securities and Exchange Commission.
Sources close to the case revealed that the parties had reached a memorandum of understanding to settle the purported class action lawsuit. The Dayton, Ohio-based company denied all liability with regard to the shareholder complaint, stating that the settlement was reached to avoid the costs of protracted litigation. Terms of the proposed settlement were not disclosed, and it was said that it was subject to the execution of a definitive settlement agreement and court approval after notice to shareholders. The deal is also dependent on the consummation of the merger with BAE's subsidiary. [
