On April 21, 2010, Finkelstein Thompson LLP secured a preliminary injunction enjoining the tender offer by L.B. Foster Company ("L.B. Foster") to acquire all of the common stock of Portec Rail Products, Inc. ("Portec") (the "Proposed Transaction").  The injunction was granted by The Honorable Christine A. Ward, Judge for the Court of Common Pleas of Allegheny County, Pennsylvania upon Plaintiffs' Motion for Preliminary Injunction.  

The Court found that Plaintiffs were likely to succeed on the merits of their claim that Defendant Marshal Reynolds, Chairman of Portec's Board of Directors, breached his fiduciary duties by failing to give due consideration to a higher offer from a hedge fund and by failing to inform the Board of this offer.  The Court also found that the injunction was justified because a number of material omissions of fact in the offering documents would impair shareholders' ability to make an informed decision regarding the Proposed Transaction.

Finkelstein Thompson LLP is gratified by the Court's decision and remains committed to pursuing shareholder rights in state and federal courts nationwide.  If you wish to discuss the Portec case, or any other shareholder litigation matter, please contact Donald J. Enright, Esq. in Finkelstein Thompson's Washington, DC offices at (202) 337-8000.