A lawsuit was filed by an investor in shares of rue21, inc. (NASDAQ:RUE) in effort to stop the proposed takeover and NASDAQ:RUE stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 06/04/2013 -- An investor, who currently holds NASDAQ:RUE shares, filed a lawsuit against the proposed takeover of rue21, inc. by funds advised by Apax Partners for $42.00 per NASDAQ:RUE share
Investors who purchased shares of rue21, inc. (NASDAQ:RUE) prior to May 20, 2013, and currently hold any of those NASDAQ:RUE shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
On May 23, 2013, rue21, inc. and Apax Partners announced an agreement under which funds advised by Apax Partners will acquire all outstanding shares of rue21 for $42.00 per share in cash. The transaction is valued at approximately $1.1 billion.
However, the plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:RUE stockholders by agreeing to sell the company too cheaply via an unfair process.
The plaintiff claims that the $42.00-offer is unfair to NASDAQ:RUE stockholders. Indeed, the performance of rue21, inc. improved lately. For instance, it reported that its Total Revenue rose from $525.60 million for the 52 weeks period that ended on Jan. 30, 2010 to $901.89 million for the 53 weeks period that ended on Feb. 2, 2013 and that its respective Net Income increased from $22.02 million to $43.90 million.
Furthermore, the plaintiffs alleges that the process is unfair to NASDQQ:RUE investors as well. Indeed, the SKM II funds, which collectively own approximately 30% of the outstanding shares of rue21, have already entered into a support agreement to vote their shares in favor of the transaction with Apax Partners.
Shares of rue21, inc. (NASDAQ:RUE) closed on June 3, 2013 at $41.99 per share.
Those who are current investors in rue21, inc. (NASDAQ:RUE), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego