National investment loss lawyers KlaymanToskes reports the Securities and Exchange Commission (“SEC”) announced today that New York-based investment advisory firm HG Vora Capital Management agreed to pay a $950,000 civil penalty to settle charges with the commission, following the firm’s failure to make timely ownership disclosures in the lead-up to its May 2022 acquisition bid for trucking fleet company Ryder System Inc.
According to the SEC’s order, HG Vora violated the beneficial ownership provisions of the Securities Exchange Act of 1934 when it failed to report its control purpose and its ownership position in Ryder System Inc. (“Ryder”).
Investors that suffered losses at HG Vora Capital Management are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lawrence@klaymantoskes.com for a free and confidential consultation to discuss legal options.
According to the SEC’s order, on February 14, 2022, HG Vora publicly disclosed its ownership of 5.6 percent of Ryder’s common stock as of December 31, 2021, and purportedly affirmed that it did not have a control purpose. Subsequently, HG Vora purportedly increased its stake in Ryder’s stock to 9.9 percent and established a control purpose no later than April 26, 2022. Under federal securities regulations,
HG Vora was obligated to disclose its control purpose and current ownership status by May 6, 2022. However, it failed to fulfill this requirement and report this information until May 13, 2022. On the same day, May 13, 2022, HG Vora sent a letter to Ryder with a proposal to acquire all of its shares at a price of $86 per share, representing a substantial premium above the prevailing market price.
Prior to this proposal and subsequent filing, and following the establishment of a control purpose, HG Vora allegedly purchased swap agreements that gave it economic exposure to the equivalent of 450,000 more shares of Ryder common stock. Following HG Vora’s public announcement of its bid on May 13, 2022, there was a significant increase in Ryder’s stock price.
Investors that suffered losses at HG Vora Capital Management are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lawrence@klaymantoskes.com for a free consultation to discuss legal options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com