Great Wolf Resorts, Inc. (NASDAQ:WOLF) Investor Files Lawsuit Against Directors To Block Takeover Bid

If you are a current investor in Great Wolf Resorts, Inc. (NASDAQ:WOLF) and purchased shares between March 12, 2012 and May 4, 2012, you have certain options and you should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Great Wolf Resorts
Case Name: 
Great Wolf Resorts Deal Case 03/15/2012
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Date Filed: 
Class Period Begin: 
Class Period End: 
Court of Filing: 
Court of Chancery of Delaware
Date Settled: 
Settlement Notice: 

October 19, 2012 (Update) -- Proposed settlement in the Great Wolf Resorts, Inc. lawsuit. According to the Notice:

This Notice is given pursuant to an Order of the Court of Chancery of the State of Delaware (the “Court”, or the “Delaware Court of Chancery”), in accordance with Rules 23(a), 23(b)(1) and 23(b)(2) of the Delaware Court of Chancery Rules, to inform you of certain proceedings and the proposed settlement of the above captioned consolidated action (the “Delaware Consolidated Action”). If you were not a beneficial owner of common stock of Great Wolf Resorts, Inc. (“Great Wolf” or the “Company”) held of record by you at any time during the period beginning on and including March 12, 2012, through and including May 4, 2012, but held such Great Wolf common stock for a beneficial owner, you are directed to forward this Notice to the beneficial owner. If additional copies of the Notice are needed for forwarding to such beneficial owners, any requests for such additional copies may be made to Great Wolf Resorts Shareholders Litigation, c/o Rust Consulting,
Inc., P.O. Box 2869, Faribault, MN 55021‐8669, or email

There will be a hearing (the “Settlement Hearing”) before the Court on December 18, 2012, at 2:00 p.m., in the Delaware Court of Chancery, New Castle County Courthouse, 500 North King Street, Wilmington, DE 19801 to determine: (1) whether the proposed settlement of the Actions (as defined herein) should be approved as fair, reasonable, adequate and in the best interests of the proposed Settlement Class (as defined herein) and the Defendants; and (2) whether the request by counsel for Plaintiffs for an award of attorneys’ fees and expenses should be granted. It is not necessary for any member of the Settlement Class, or any other shareholder of Great Wolf, to appear at the Settlement Hearing. See THE SETTLEMENT HEARING, below.

San Diego, March 15, 2012 (Shareholders Foundation) -- An investor in NASDAQ:WOLF shares filed a lawsuit against members of board of directors to stop the proposed takeover of Great Wolf Resorts, Inc. by an affiliate of Apollo Global Management, LLC for $5 per NASDAQ:WOLF share.

According to the complaint the plaintiff alleges that defendants failed to undertake a process to obtain maximum value and adequately compensate NASDAQ:WOLF shareholders. Specifically the plaintiff claims that defendants breached their fiduciary duties owed to NASDAQ:WOLF stockholders arising out of the attempt to sell Great Wolf Resorts to an affiliate of Apollo Global Management, LLC at an unfair price via an unfair process.

On March 13, 2012, Great Wolf Resorts, Inc. (NASDAQ: WOLF) and an affiliate of Apollo Global Management, LLC (NYSE: APO) announced that they have entered into a merger agreement whereby Apollo Global Management, LLC, will acquire Great Wolf Resorts, Inc for approximately $703 million, including the assumption of the Company’s outstanding debt. Under the terms of the proposed transaction, the affiliate of Apollo Global Management, LLC will make an offer to purchase all outstanding shares of Great Wolf Resorts, Inc common stock for $5.00 per share

Great Wolf Resorts, Inc said the $5 offer represents a premium of 72.9% over the six-month average of Great Wolf’s share price ending on March 12, 2012, a premium of 50.4% over the ninety-day average of Great Wolf’s share price ending on March 12, 2012, and a 19.3% premium over Great Wolf’s closing stock price on March 12, 2012.

However the plaintiff claims that the $5offer is unfair to NASDAQ:WOLF stockholders and undervalues the company. Indeed, following the takeover news shares of Great Wolf Resorts, Inc. (NASDAQ:WOLF) jumped from $4.19 on Monday to $5.49 during Tuesday, thus above the offer. Additionally, at least one analyst has set the high target price for NASDAQ:WOLF shares at $6.00 per share, also above the current offer. Furthermore, Furthermore, so the plaintiff, Great Wolf Resorts’ own financial adviser, Deutsche Bank Securities Inc., valued NASDAQ:WOLF shares as high as $7.98 a share.

The plaintiff also claims that the proposed transaction is unfair to NASDAQ:WOLF investors as it was the result of an unfair and flawed sales process in which Apollo Global Management, LLC was favored over other interested parties. The plaintiff says that the Merger Agreement contains preclusive deal protection devices, such as a no-solicitation provision and a $5.3 million termination fee that do not benefit the Company or its stockholders, but, instead, benefit Apollo Global Management, LLC.