A law office recently announced that it would investigate a proposed merger between two companies due to potential issues related to fiduciary duty. Depending on the outcome of the investigation, there may be a securities class action lawsuit down the line.
Law firm Brodsky and Smith, LLC, began investigating the board of directors of Schawk, Inc., after it agreed to be purchased by Matthews International Corporation. Through the deal, shareholders of Schawk stock would earn just $11.80 in cash, as well as approximately 0.20 shares of Matthews International common stock, for each share they own. This may be too low, and there could be breaches of fiduciary duty because of this issue.
Another issue is that the board of directors may not have made the decision with the best interests of shareholders in mind. The family that owns Schawk has approximately 61 percent of the company's stock personally, or through their trusts. The CEO of Schawk will also likely stay with the company if the deal is completed, with a position on the board of directors. With these issues in mind, there may be questions about whether or not the remaining shareholders are getting a fair deal.
There is an ability for shareholders to speak with the law firm to learn about the investigation and the proposed deal, especially regarding topics such as how it may affect them and what legal issues remain. Both Jason Brodsky and Evan Smith are available to speak about these matters, and they can be reached by mail, telephone or email. The law office's website also provides more information on the process.
Second investigation underway
Another law office recently announced it would look into claims against the Schawk board of directors for many of the same reasons. Like the other investigation, this also may become a class action lawsuit, depending on the outcome.
Faruqi and Faruqi, LLP, will have one of its partners, Juan Monteverde, investigate the proposed transaction to determine if the company's leaders breached fiduciary duty due to potentially not giving shareholders a fair valuation in the deal.
For any shareholders looking to learn more about the case, it is possible to speak with Monteverde to gain this information. He can be reached by telephone or email. Additionally, the law office has further information available on its website.