A law firm recently noted that it will look into the claims from shareholders against the leaders at a promotions company due to its proposed transaction with the subsidiary of another ad agency. Depending on the outcome of this investigation, there is a potential for it to become a securities class action lawsuit.
Brodsky and Smith, LLC, noted that it started to investigate the board of directors at MKTG, Inc., after it agreed to be acquired by Dentsu Aegis Networks, Ltd., subsidiary of Aegis Lifestyle, Inc. The terms of the transaction, which is worth $52 million, would provide those shareholders of MKTG just $2.80 in cash for each share of stock owned in the company, if the deal is approved.
Due to the issues surrounding the deal, there may be breaches of fiduciary duty, as well as state law violations, as the leaders of MKTG may not have acted in the best interests of those who held stock in the company. The value of the company may be too low, while its assets and revenue may not have been considered enough, and shareholders may be hurt by this.
It is an option to discuss the matters listed above with the law office, as well as how the legal aspects of the case may affect them. Any further questions related to the case are also welcome. Speaking with Evan Smith or Jason Brodsky is best, and they can be reached by telephone, mail or email. Additionally, the law office's website provides more information.
Second investigation commences
A separate litigation firm also planned to investigate MKTG's board of directors due to many of the aforementioned reasons. There is also a possibility that this will develop into a class action lawsuit down the line.
Law firm Rigrodsky and Long, P.A., explained that it is investigating the company's leaders because of the possibility that its leaders did not adequately shop the company on the market before coming to the deal with Aegis Lifestyle. Due to this, it may have not produced the best value available for shareholders.
It is possible to also speak with this law firm, as long as shareholders acquired interests in the company previous to May 27, 2014. For those who want to learn more about the process, both Seth Rigrodsky and Gina Serra can be reached by telephone, mail or email. The law office's website also has more details.