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Empire Resorts, Inc.

  CASE CAPTION           

The MH Haberkorn 2006 Trust, et al. v. Kien Huat Realty III Limited, et al. 

  COURT  

Delaware Court of Chancery

  CASE NUMBER

Case No. 2020-0619-KSJM

  JUDGE

Honorable Chancellor Kathaleen St. Jude McCormick

  PLAINTIFF

The MH Haberkorn 2006 Trust, Matthew H. Haberkorn, Kiley Rose Haberkorn, and Tippy Living Trust U/A DTD September 10, 2013

  DEFENDANTS

Former members of  Empire Resorts, Inc.’s Board of Directors and the former controlling stockholder of Empire Resorts, Inc.

Plaintiffs challenged the $335 million take-private acquisition of Empire Resorts, Inc. by Empire’s majority shareholder, Kien Huat Realty III Limited and its affiliates, which closed on November 15, 2019 (the “Take-Private”).  Plaintiffs challenged the negotiation process of the Take-Private, including a flawed majority-of-the-minority vote and alleged that the Take-Private, approved by a special committee, undervalued the shares of Empire common stock.

After successfully litigating a books and records demand pursuant to 8 Del. C. § 220 of the Delaware General Corporation Law in early 2020, Plaintiffs filed a plenary class action complaint on July 24, 2020, naming Empire Resorts, Inc., its controlling stockholder and Empire’s Board of Directors as defendants.  On July 23, 2021, the Court denied defendants’ motion to dismiss the case.  Plaintiffs then took discovery, including reviewing over 175,000 pages of documents.  Trial was originally set for February 2023.  After a mediation session, on April 4, 2022, plaintiffs agreed to settle the case against all of the defendants.  The final terms of the settlement are still being negotiated by the parties.  The parties executed the Stipulation and Agreement of Compromise and Settlement on June 13, 2022 and the Court will hold a settlement hearing on September 15, 2022.

Verified Stockholder Class Action Complaint

Telephonic Rulings of the Court on Defendants’ Motions to Dismiss

Stipulation and Agreement of Compromise and Settlement 

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