Feihe International Shareholder Litigation
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Welcome to the Feihe International Shareholder Litigation Website

This website has been established to provide general information regarding the Feihe International Shareholder Litigation. The capitalized terms used on this website and not defined herein shall have the same meanings ascribed to them in the Stipulation of Settlement dated May 27, 2015.

This case is currently pending before Judge Andrew H. Stone in the Third Judicial District Court, in and for Salt Lake County in the State of Utah (the "Court") and the case is called In re Feihe International, Inc. Shareholder Litigation, No. 120906911(the "Lawsuit" or "Action"). Feihe International, Inc. ("Feihe" or the "Company") and Morgan Stanley Private Equity Asia III Holdings (Cayman) Ltd. ("MSPEA") are called the Defendants. Richard Frank, Frederick G. Tobin and Arthur M. Read II are called the Plaintiffs.

The Lawsuit (which is a consolidated action composed of a number of related actions) alleges that the Board breached fiduciary duties owed to Feihe stockholders in connection with the Merger, and that Feihe and MSPEA aided and abetted those alleged breaches. The Lawsuit claims that the Board engaged in an unfair process in approving and recommending the Merger, and agreed to the Merger at an unfairly low price.  As part of the Merger Proposal, all of the outstanding shares of Feihe common stock not owned by Feihe chairman and chief executive officer You-Bin Leng (“Mr. Leng” or the “Chairman”), MSPEA, and affiliates of MSPEA was acquired for $7.40 per share.

Plaintiffs and Plaintiffs’ Counsel believe that all of their claims asserted against the Defendants have legal merit, and that their diligent prosecution of the claims asserted in the Lawsuit has led to a settlement that provides a recovery for the Class.

Defendants deny each of Plaintiffs’ allegations and all liability and damages.

In consideration for the full and final settlement and dismissal with prejudice of this litigation, and the release by the Class Members of any and all Released Claims, the Defendants have agreed to pay $6.5 million cash into an interest-bearing escrow account for the benefit of the Class.  The Class is defined as all persons who owned or beneficially held shares of Feihe common stock in the period from and including October 3, 2012 through June 28, 2013, including their legal representatives, heirs, successors in interest, assignees, and transferees of such foregoing holders, excepting Defendants in the Action or their family members and any Released Party. In this paragraph, “family members” includes an individual’s spouse, parents, siblings, children, grandparents, grandchildren, or other descendants; the spouses of his or her parents, siblings and children; and the parents and siblings of his or her spouse, and includes step and adoptive relationships. In this paragraph, “spouse” shall mean a husband, a wife, or a partner in domestic partnership or civil union. For avoidance of doubt, Class includes mutual funds, other pooled vehicles and separately managed investment accounts that primarily invest in publicly traded securities for which Morgan Stanley Investment Management Inc. or its investment advisory affiliates (other than those affiliates that are primarily engaged in investing in private securities) serves as investment adviser or investment manager. The Class shall further exclude any former Feihe shareholder who has perfected dissenters’ rights under Utah law to obtain payment for common stock acquired in the Acquisition, and any purported Class Member who requests exclusion therefrom in accordance with the requirements set out in the Notice of Proposed Settlement of Class Action, Settlelement Hearing, and Right to Appear (the "Notice").

The Court appointed the law firms of Entwistle & Cappucci LLP and Robbins Geller Rudman & Dowd LLP as Co-Lead Counsel.

Although the information in this website is intended to assist you, it does not replace the information contained in the Notice and Stipulation of Settlement, both of which can be found and downloaded by clicking on the Case Documents tab above. We recommend that you read the Notice and other relevant case documents carefully.


SUBMIT A PROOF OF CLAIM FORM By November 6, 2015. This is the only way to get a payment.
OBJECT Write to the Court by August 10, 2015 about why You don’t like the Settlement.
REQUEST EXCLUSION FROM THE CLASS Get no payment. Retain Your rights to be part of a lawsuit against Defendants about the Released Claims. Must be received by August 10, 2015.
DO NOTHING Get no payment. Give up your rights.