Aeroflex Holding Corp. receives class action lawsuit after merger proposal

A law office recently noted that it filed a class action lawsuit against a wireless communication equipment manufacturer after it may have undervalued shareholders during a merger agreement.

Law firm Andrews and Springer, LLC, explained that the litigation was filed against the leaders of Aeroflex Holding Corp., after its leaders agreed to a buyout from Cobham plc. The two companies announced on May 20, 2014, that they would merge, with Cobham taking over Aeroflex Holding in a deal worth close to $1.46 billion. However, shareholders of Aeroflex Holding would earn just $10.50 per share in cash for each individual stock owned in the company. Not only is there a possibility that shareholders were undervalued in the deal, but the premium also may not be high enough to make stockholders happy.

Another issue brought up in the lawsuit was that Goldman Sachs shares nearly 65 percent of Aeroflex Holding's ownership before the completed deal. The company is in a partnership with Veritas Capital Fund III, L.P., and Golden Gate Private Equity, Inc. Goldman Sachs acted as the adviser for Aeroflex Holding during the process.

It is possible to become lead plaintiff in the case, as no class has been certified as of yet. When looking to learn more about the lawsuit, how to join it and other related questions, speaking to the law firm is a possibility. Craig Springer is the best person to speak with, and can be reached by telephone or email. There is also additional information available on the law office's website.

Separate investigation begins
Another law office explained that it is looking into claims from shareholders that Aeroflex Holding undervalued them during the merger process. This also could become a securities class action lawsuit.

Law firm Levi and Korsinsky noted that there may be breaches of fiduciary duty as well as state law violations from Aeroflex Holding's leaders due to the pending merger. The leaders of the company may not have properly shopped it around to potential buyers before coming to the decision to sell to Cobham.

It is an option for shareholders to learn more about this investigation by speaking with the law office. The best person to contact is Joseph Levi, who can be reached by telephone or email. Additionally, shareholders can visit the litigation firm's website to gain more information.