010228 IBP Sued for Violations of Securities LawsFebruary 10, 2001Austin, TX - Baskin, Bennett & Komkov LLP announced that a shareholder action has been commenced in the United States District Court for the District of South Dakota to remedy the allegedly wrongful actions of IBP Inc.'s senior officers and directors in connection with their attempts to divert IBP's valuable assets to a small group of company insiders in connection with the sale of IBP. According to James Baskin, the Complaint alleges that defendants first attempted to sell IBP directly to a group of IBP insiders at a firesale price of $22.25 per share and were forced by the substantially higher unsolicited offer from Smithfield Foods to shift tactics and terminate their plans to acquire IBP. Thereafter, defendants were alleged to have engaged in wrongful actions for the basic objective of transferring enormous value to IBP's senior insiders in connection with the sale of IBP, including a $66.5 million payment to Donaldson, Lufkin & Jenrette. According to Baskin, the Complaint alleges that, to accomplish their plan, defendants violated federal and state law by, among other things, disseminating false and misleading tender offer materials to IBP's shareholders in connection with the sale of IBP. According to Baskin, the Complaint further alleges that defendants have now admitted that defendants also caused the Company to disseminate inaccurate financial statements prior to the October 2000 announcement of the sale of IBP.
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