Safeway receives class action lawsuit after merger agreement

Safeway Securities Class Action Lawsuit

A law office recently announced the filing of a securities class action lawsuit against a grocery store chain due to potential securities law violations after a merger agreement with another supermarket chain.

Robbins Arroyo, LLP, noted that the litigation was filed in the U.S. District Court for the Northern District of California, Oakland Division. This action was against the leaders of Safeway, Inc., after the company agreed to be purchased by Cerberus Capital Management, L.P., the owner of Albertson’s LLC. This includes all shareholders who owned stock in Safeway at the time of the deal announcement.

The allegations in the complaint center around whether or not Safeway’s leaders violated the Securities Exchange Act of 1934, specifically Sections 14(a) and 20(a). Additionally, there may have been a violation of the Securities and Exchange Commission Rule 14a-9.

Those who owned stock in Safeway would earn just $32.50 in cash per share as well as the right to receive distributions of net proceeds from the deal, which are worth approximately $3.65 per share.

There is an option for shareholders to apply for the lead plaintiff position, and they would need to file the proper paperwork with the court by 60 days after May 15, 2014. This is not a mandatory action for those who want to participate in the case, and it is still possible to remain an absent class member and collect in the event of a financial return.

Any shareholders who are looking to learn more about how this case may affect their interests or rights, it is an option to discuss these matters with the law office. The best person to speak with is Darnell Donahue, and he can be reached by telephone or email. There are also further details available on the law firm’s website, including the shareholder information form.

Safeway Securities Class Action Lawsuit

Second lawsuit filed
Another law firm noted that it filed a class action lawsuit after the purchase for many of the aforementioned reasons.

Levi and Korsinsky, LLP, filed the lawsuit in a state court in California, noting that the return for Safeway shareholders was approximately $40 per share. There was a target price of approximately $46 per share by an analyst.

It is also possible to discuss these matters with this law firm. Joseph Levi is available to be contacted by telephone or email, while there is also information on the law office’s website.