An investor in NYM stock filed a lawsuit in New York State Court on behalf of current investors NYMAGIC, INC. (NYSE:NYM) alleging breaches of fiduciary duty by certain members of the NYMAGIC board of directors for selling NYMagic too cheaply to ProSight Specialty Insurance Holdings, Inc.
According to the complaint the plaintiff alleges that the defendants breached their fiduciary duty owed to the NYMAGIC, INC. (NYSE:NYM) shareholders by selling NYMagic through an unfair process at an unfair price.

On Thursday, July 15, 2010, NYMAGIC, INC. (NYSE: NYM), located in New York, announced that it was entering into a agreement to be acquired by ProSight Specialty Insurance Holdings, Inc. for $25.75 per share in cash. According to NYMAGIC, INC the offer represents a premium of 23.5% to NYMAGIC’s closing price yesterday of $20.85.

Shares of NYMAGIC, INC. (NYMAGIC) traded almost $22 per share before the new and climbed in response to the announcement to its 52week High of $25.56 per share. But the plaintiff alleges that the “value of NYMAGIC’s stock is immensely greater than the consideration”. Indeed, NYMAGIC stock traded in 2008 at almost $28 per share and at almost $45 per share in 2007, and while NYMAGIC, INC. had to report in 2008 declining Revenues of $56.18million from $190.44million Total Revenue in 2007, NYMagic was able to increase its Total Revenue in 2009 to $217.50million with a Net Income of $45.46million.