Lazard Freres Unit Sues ARV Assisted Living

ARV Assisted Living Inc. said Friday that its largest shareholder--a Lazard Freres & Co. affiliate--has filed a lawsuit seeking to have the Costa Mesa company’s annual meeting declared invalid. The lawsuit, filed in Delaware state court by Prometheus Assisted Living LLC, claimed ARV held the meeting improperly last summer. The affiliate, which owns a 48% stake in ARV, also alleged that several proxies presented at the meeting were improperly counted, and the election of individual directors was mishandled. ARV said it is reviewing the lawsuit. The Lazard affiliate, which abstained from voting at the meeting, has been at odds with ARV’s management since last spring, when Lazard tried to buy ARV competitor Atria Communities Inc. ARV filed suit, but a California court in August dismissed the suit, which had sought to prevent the acquisition and accused Lazard of fraud.