Shareholders recently asked a law office to look into issues related to the purchase of a scientific technology company by another firm. It is possible that this may become a securities class action lawsuit in the future.
Law firm Rigrodsky and Long, P.A., announced its investigation of the board of directors of Material Sciences Corporation, after the company agreed to be purchased by New Star Metals, Inc. The deal, if approved, would be worth close to $139 million.
The pending transaction would give shareholders of Material Sciences $12.75 in cash for each share of the company owned. However, this valuation may be too low, which could signal that there was a lack of effort from the Material Sciences board of directors to get the best deal for shareholders when agreeing to the sale. One analyst at Yahoo! Finance gave a price target of $13 per share for the company's deal.
With this in mind, the board of directors potentially breached fiduciary duty, as well as possibly committed other law violations during the sales process.
Any shareholders who purchased stock in Material Sciences previous to Jan. 9, 2014 are welcome to speak with the firm regarding questions about the investigation. The law office also is interested in receiving any information that could better facilitate the process. Both Seth Rigrodsky and Gina Serra are available to be contacted, and they can be reached by telephone, mail or email. The law firm's website also has information for shareholders.
Second investigation underway
Another law firm also spoke with shareholders regarding these issues, and recently started investigating the claims against the board of directors at Material Sciences. This also may become a class action lawsuit down the line.
The Law Offices of Vincent Wong noted that it is seeking more information about the situation with Material Sciences. It specified that the deal would transfer Material Sciences to Zink Acquisition Holdings, Inc., if it is approved. Issues related to this investigation are similar to the aforementioned firm, as the office will look to determine if the company participated in the sales process properly.
It is also an option for shareholders to speak with this law office in order to learn more about this case. Vincent Wong is available to discuss these matters by telephone or email. Additionally, the office's website has more information on the process.