Article: Movie Star sued by two companies over acquisition. (Sanmark-Stardust Inc's acquisition of Movie Star Inc.; WLB Acquisition Corp., WLB Holding Corp.)

MOVIE STAR SUED BY TWO COMPANIES OVER ACQUISITION

Two companies have filed suit in state supreme court against Movie Star, Inc., its former principal shareholders and Sanmark-Stardust, Inc., challenging Sanmark's recent acquisition of about 65 percent of Movie Star.

The action was initiated by WLB Acquisition Corp. and its parent, WLB Holding Corp., which contend that the deal between Sanmark and Movie Star breached a merger agreement between Movie Star and the plaintiffs.

WLB Holding and WLB Acquisition maintain in court papers that they entered into a merger agreement with Movie Star, a lingerie and loungewear manufacturer, on Sept. 16. The ...

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