A litigation firm recently began an investigation of a marketing company after its board of directors agreed to a transaction that may hurt shareholders. This may develop into a securities class action lawsuit down the line.
Pomerantz Grossman Hufford Dahlstrom and Gross, LLP, noted it is seeking answers for shareholders of Valassis Communications, Inc. The company's board recently came to a sales deal with Harland Clarke Holdings Corp.
The terms of the purchase gave shareholders of Valassis approximately $34.04 per share in cash. Despite this, there are some issues. The revenue multiples are not as high as other similar transactions. This transaction also may be a level that is too low for the price to earnings before interest, taxes, depreciation and amortization. With all of this in mind, the company's board may not have shopped it around sufficiently, subsequently breaching fiduciary duty.
It is possible for shareholders to speak with the firm for more information on the purchase and the investigation. Those interested parties should speak with law firm member Ofer Ganot, who can be reached by phone or email.
Further investigation begins
Another law office is working on behalf of shareholders of Valassis Communications to determine if there were any issues such as fiduciary duty breaches due to this pending deal. This action also has the potential to be a class action claim in the future.
Brodsky and Smith, LLC, noted it is seeking answers as to whether or not there were problems with the company's transaction. There may be some undervaluing issues present, especially due to the stock pricing. Shareholders may not be getting the most out of their interests, as the $34.04 per share in cash agreed to in the sale is below what it was worth afterward. A measurement of the stock post-sale had the company valued at $34.54 per share. This could play a role in potential law violations by the board.
For those who have interest in speaking about this case, it is possible to contact the law firm to learn more. This is for shareholders who are curious about the purchase's legal issues, as well as anyone with questions about this process. Both Jason Brodsky and Evan Smith are available, and they can be reached by email, telephone or mail. There is also more information about this case on their website.