(MENAFNEditorial) iCrowdNewswire - Apr 11, 2018
Court Finds that China Fund Did Not Establish Likelihood of Success on the Merits of its Claims
COATESVILLE, Pa.,— City of London Investment Management Company Limited, which represents clients who are the beneficial owners of approximately 27.6% of the outstanding shares of common stock of The China Fund, Inc. (NYSE: CHN), today announced that the Court denied the motions made by China Fund in its legal action againstCity of Londonin federal court inthe United StatesDistrict Court for the Southern District ofNew York(SDNY).City of Londonintends to move to have China Fund's SDNY lawsuit dismissed.
In the SDNY lawsuit, China Fund brought claims againstCity of Londonalleging that it had made material misleading statements in its proxy materials. Through the SDNY lawsuit, China Fund asked the Court to invalidate all stockholder votes in favor of the election ofCity of London'stwo highly-qualified independent nominees and the termination of China Fund's existing investment manager, and to blockCity of Londonfrom soliciting additional votes. Separately,City of Londonfiled a Verified Complaint in the Circuit Court ofBaltimore County, Maryland, bringing claims against China Fund and the members of its Board of Directors in connection with whatCity of Londonbelieves was China Fund's wrongful postponement of its 2018 annual meeting of stockholders untilApril 26, 2018.
OnApril 9, 2018, the SDNY Court denied China Fund's motion for a temporary restraining order, expedited discovery and preliminary injunction in full. The SDNY Court found that China Fund did not establish a likelihood of success on the merits of its claims challengingCity of London'sproxy materials. The Court summarized its findings succinctly as follows: "Simply put, the pleadings here and the factual materials adduced do not support plaintiffs' [China Funds'] claim thatCity of Londonhas made false or misleading statements or representations or failed to disclose material information that it had a duty to disclose. The Court therefore declines to enter the temporary restraining order or injunction that plaintiffs seek. Simply put, the Court does not find any unlawful conduct to restrain."
City of Londonintends to continue to vigorously defend itself against the SDNY lawsuit, whichCity of Londonbelieves is a baseless act of retaliation and an attempt to intimidateCity of Londonand other stockholders from making their voices heard and exercising their legal rights at China Fund's 2018 annual meeting of stockholders.
If you have any questions or need assistance with voting yourBLUEproxy card, or need additional copies ofCity of London'sproxy materials, please contactCity of London'sproxy solicitor, Saratoga Proxy Consulting LLC at (212) 257-1311 or toll-free at (888) 368-0379.
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