Suit challenging Mount Snow merger dismissed

Posted Sunday, November 24, 2019 8:27 pm

NEW YORK — A lawsuit alleging conflicts of interest in the acquisition of West Dover-based ski resort Mount Snow's parent company Peak Resorts by Vail Resorts has been dismissed.

A notice of voluntary dismissal was filed last week in the United States District Court for the Southern District of New York. The plaintiff Eammon Carleton, who had been a stockholder in Peak Resorts, dismissed the claims without prejudice so he maintains the right to refile the case.

His attorney had unsuccessfully tried to stop a September vote on the merger of the companies by stockholders and the acquisition itself. The suit alleged Peak Resorts violated sections of the Securities Exchange Act of 1934 and United States Securities and Exchange Commission rules in its attempt to sell the company to Vail Resorts Inc., did not disclose potential conflicts of interest of its managers and directors, and released false or misleading information regarding financial analyses. The list of defendants had been made up of members of the company's board of directors.

A suit with a complaint similar in nature was filed against the company and board members in federal court in Missouri in August. The case had been reassigned to a new judge after the original judge had cited conflicts of interest. No other actions have been taken yet.

Peak Resorts never responded to the complaints in court but described the suits as lacking in merit in a United States Exchange Commission filing.

Reach staff writer Chris Mays at cmays@reformer.com, at @CMaysBR on Twitter and 802-254-2311, ext. 273.