Lazard: No OK Needed From ARV

Firing the latest salvo in a legal dispute with ARV Assisted Living LLC in Costa Mesa, New York investment house Lazard Freres & Co. contended Tuesday that one of its affiliates was entitled to acquire another assisted-living firm without seeking ARV’s approval.

Lazard spelled out its position in documents filed Tuesday in response to ARV’s Superior Court lawsuit alleging that the investment firm was moving into the assisted-living market and leaving ARV behind.

A Lazard affiliate holds a 47.9% stake in ARV, which contended in the lawsuit that Lazard’s affiliates can’t acquire another assisted-living operator without getting consent of 75% of ARV’s board members.

As a major holder of ARV’s stock, Lazard said in the filing that “we have strong incentives to assure that ARV performs well to the benefit of all shareholders. But the plain language of our contracts permits us to invest in any segment of the assisted-living industry.”