Winn-Dixie Stores agrees to class action settlement

A law office recently explained that a retail chain came to an agreement with its shareholders to settle a securities class action lawsuit.

Robbins Geller Rudman and Dowd, LLP, noted that a class action settlement was reached between Winn-Dixie Stores, Inc., and its shareholders related to the litigation that was filed after the company agreed to a merger with BI-LO, LLC. The settlement, if approved, would offer shareholders a cash payment or an appraisal determination.

The initial deal would have shareholders earn $9.50 per share of stock owned in Winn-Dixie Stores. However, this may not have been high enough. With this settlement, the company's leaders will admit no wrongdoing.

It is an option to take part in the cash payment, and in order to do this, it is necessary to send in the proof of claim form within 30 days from the effective date. For those interested in the appraisal determination, it is mandatory to send in $1 per share, and fill out and send in the appraisal election form no latter than Oct. 21, 2014.

Any individuals who are not interested in being a part of the settlement need to exclude themselves by Oct. 21, 2014. Those who are objecting some or all of the settlement decision need to voice their concerns by Nov. 5, 2014. It is an option to learn more about the settlement by visiting the shareholders settlement website.

The court will have a final settlement hearing on Dec. 5, 2014, and the judge will determine the details of the case.

Shareholders who are interested in learning more about the settlement have the option to speak with the law office. Cullin O'Brien is the best person to contact, and can be reached by telephone.

Investigation began in 2011
Two law offices started an investigation of the merger agreement between Winn-Dixie Stores and BI-Lo in Dec. 2011.

The Briscoe Law Firm, along with Powers Taylor, LLP, noted that it started seeking answers to shareholders' claims three years ago, due to investors taking issue with the $9.50 in cash per share agreed in the deal. The reason for the issues was due to the target price of shares being $11, as one analyst measured it.

This merger had a total value of close to $560 million, and shareholders may not have been given enough money in the deal.