Patriot National: Court order enjoins company form issuing special cash dividend
On November 21, 2016, in connection with the previously disclosed lawsuit filed by Hudson Bay Master Fund Ltd. in the United States District Court for the Southern District of New York against Patriot National, Steven M. Mariano, our Chairman and Chief Executive Officer, and American Stock Transfer Company, LLC as a nominal defendant, the Court granted a temporary restraining order enjoining the Company from issuing a special cash dividend of $2.50 per share of common stock on December 9, 2016, unless the Company first places $57.5 million in escrow pending a hearing on December 1, 2016. At the December 1, 2016 hearing, the Court will consider whether a preliminary injunction will be ordered that would continue to prohibit the Company from issuing a special cash dividend of $2.50 per share of common stock. The Company is vigorously opposing the request for the issuance of a preliminary injunction. The Company previously announced the special dividend in a press release and Form 8-K filed with the Securities and Exchange Commission on November 14, 2016. Subject to any further order of the Court extending the temporary restraining order or issuing a preliminary injunction, the Company expects to pay the announced special dividend as planned on December 9, 2016 to shareholders of record at the close of business on November 28, 2016. The restraining order was issued without a hearing and the Company is confident that it will prevail on the merits at the December 1, 2016 hearing. The Company has been indemnified for any losses related to this litigation by Mr. Mariano.