Tandycrafts sues investors

Thursday, August 24th 2000, 12:00 am
By: News On 6

Tandycrafts Inc. of Fort Worth has filed a lawsuit in a Texas federal district court, alleging violation of securities laws by New York-based investment firm Steel Partners II LP, its general partner Warren Lichtenstein and other related parties, collectively called the Steel Partners Group.

In June, Steel Partners II and another investment firm requested that Tandycrafts hire an investment bank to assist in a sale or merger transaction, and the group nominated a slate to replace Tandycrafts' board.

In a press release Wednesday, Tandycrafts alleged that the Steel Partners group filed a series of misleading Schedule 13D reports with the Securities and Exchange Commission.

Tandycrafts says the Steel Partners group didn't disclose intentions to destabilize Tandycrafts, past violations of securities laws, or activities and agreements in respect to Tandycrafts.

In June, Mr. Lichtenstein said the investment group wants management to "immediately pursue a sale of Tandycrafts" to create value for the company's shareholders.

The company also seeks to prohibit the group from voting its Tandycrafts shares and the forced liquidation of shares it allegedly acquired unlawfully.