A law office announced that a securities class action lawsuit was filed against the leaders of an information technology company after it agreed to be purchased by another firm.
Rigrodsky and Long, P.A., noted that the lawsuit was filed in the Delaware Court of Chancery against the board of directors at Cbeyond, Inc. This includes all shareholders who owned securities at the time of the purchase proposal on April 21, 2014, from Birch Communications, Inc., which was worth close to $323 million.
There are allegations that the leaders of Cbeyond did not do enough to shop the company around and get the best value available before coming to the proposal with Birch Communications. If the deal is approved, shareholders of Cbeyond would earn anywhere in between $9.97 to $10 per share in cash for each stock owned in the company. The final amount will depend on a stock transaction process that gives shares to employees once the deal is completed.
Further information about the potential for applying to the lead plaintiff position may be available, though the position is not mandatory for any one shareholder to take up.
It is possible for shareholders to discuss matters related to the lawsuit with the law firm. The best people to speak with are Seth Rigrodsky and Gina Serra, who can be reached by mail, telephone or email. Additionally, there is further information available on the law office's website.
Separate investigation announced
Another law firm noted that it is looking into the issues related to Cbeyond's pending transaction to Birch Communications for many of the same reasons. Depending on the outcome of the process, there is a potential for this also to become a class action lawsuit in the future.
Law office Faruqi and Faruqi, LLP, noted that it was investigating the leaders of Cbeyond due to potential fiduciary duty breaches in relation to the deal with Birch Communications. This is because the deal may not only be undervalued, but it also could hurt shareholders in the process.
For those who are looking to learn more about the investigation, and how it may affect their rights and interests, it is also an option to discuss these issues with this law office. The best person to speak with is Juan Monteverde, and he can be reached by telephone or email.