A law office recently announced that it filed a securities class action lawsuit against a telecommunications company due to potential law violations related to its purchase by another company.
Law firm Levi and Korsinsky, LLP, noted that the litigation was filed against the board of directors at TW Telecom, Inc., after they agreed for the company to be purchased by Level 3 Communications, Inc. The lawsuit was entered into a state court in Delaware.
Shareholders would be set to receive $10 in cash, as well as 0.7 shares of Level 3 Communications if the deal is approved. However, this factors to approximately $40.86 per share in TW Telecom, which may not be a high enough value. Due to these issues, the leaders of TW Telecom may have violated state law and breached fiduciary duty by not shopping the company around enough to get the best deal for shareholders. Another related issue is that Level 3 may be paying too little for the company's shares.
For those shareholders who are interested in learning more about the case, it is possible to discuss matters with the law office. The best person to speak with is Joseph Levi, and he can be reached by telephone or email. Additionally, there is further information available on the law office's website.
It also may be an option to discuss issues related to being a lead plaintiff with the law firm, though the court will make decisions on any approval related to the position.
Separate investigation begins
Another law office noted that it would investigate the claims against the board of directors for many of the aforementioned reasons. This also may develop into a class action lawsuit in the future.
Law office Brodsky and Smith, LLC, noted that the shareholders of TW Telecom would be receiving a sum that may be too low, and may need to be valued higher. The company's leaders may not have acted in the best interests of its shareholders when it came to the agreement with Level 3.
For further information on the case, it is an option to discuss questions and concerns with this law office. Both Evan Smith and Jason Brodsky are available to speak about these issues, and they can be reached by mail, email or telephone. The law firm's website also has additional details.