USA Truck Files Breach Of Contract Lawsuit Against Knight Transportation
USA Truck (NASDAQ: USAK) stated today that it has filed a breach of contract lawsuit against Knight Transportation Inc. (NYSE: KNK) for, among other things, improperly using USA Truck's confidential information to begin a creeping hostile acquisition of USA Truck at a price that the Board has unanimously concluded does not reflect the Company's full intrinsic value.
USA Truck's Board of Directors is taking this action in order to ensure that it can consider a proposed transaction in light of the recent initiatives undertaken by the Company's new management team and earnings growth prospects without the threat imposed by Knight Transportation's share acquisitions. The lawsuit seeks to require Knight Transportation to restore a level playing field by divesting the shares it acquired in violation of the Confidentiality Agreement.
USA Truck issued the following statement regarding the lawsuit:
USA Truck's Board of Directors is very disappointed that Knight is doing exactly what it promised not to do: use confidential information that it was provided in the context of friendly and private discussions regarding a