Yongye International acquisition under investigation

A law office recently announced that it is investigating a Chinese agricultural nutrient company on behalf of its shareholders after a proposed sale agreement. There is a potential for this to become a securities class action lawsuit in the future.

Law firm Brodsky and Smith, LLC, began looking into shareholders' claims against the board of directors at Yongye International, Inc. This was because the firm agreed to be purchased by the CEO and chairman of the firm. Through the pending deal, shareholders will earn just $7.10 per share in cash. The allegations against the business leaders at Yongye International are that they potentially breached fiduciary duty as well as committed state law violations for not looking out for the best interests of stockholders.

Shares being paid out at the aforementioned amount may undervalue the company's stock. Initially, the company had shares worth $6.69 each, so the $7.10 per share may not be a high enough valuation.

For those shareholders who are interested in learning more about this investigation, it is an option to speak with the law office. This can include any inquiries regarding how a person's rights may be affected, legal ramifications and any other related topics. Both Evan Smith and Jason Brodsky are available to speak on these matters, and they can be reached by telephone, mail or email. Additionally, the law office's website has further information available.

Second investigation begins
Another law firm explained that it also is looking to learn more about the claims against Yongye International, which could also become a class action claim.

Law office Powers Taylor, along with former attorney at the Securities Exchange Commission Willie Briscoe, noted the joint investigation for many of the aforementioned reasons.

"The investigation relates to the fairness of the proposed transaction to Yongye shareholders and whether the Board of Directors is adequately shopping the company in order to obtain the best possible price for the shareholders," said Briscoe. "In addition, the firms are actively investigating possible breaches of fiduciary duty and other violations of state law by the Board of Directors of Yongye in connection with the potential approval of this transaction, and whether Yongye's Board of Directors is acting in the shareholders' best interests."

It is possible to also speak to Briscoe or the law firm to learn more about the process. This can be accomplished by telephone or email.