San Diego, CA -- (SBWIRE) -- 05/29/2012 -- An investor in NASDAQ:CHRS shares filed a lawsuit against members of the board of directors of Charming Shoppes, Inc. in effort to stop the proposed sale of Charming Shoppes, Inc. to Ascena Retail Group at $7.35 per NASDAQ:CHRS share.
Investors who purchased shares of Charming Shoppes, Inc. (NASDAQ:CHRS) prior to May 2, 2012 and currently hold any of those NASDAQ:CHRS shares have certain options and should contact Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:CHRS investors arising out of the attempt to sell the company too cheaply via an unfair process.
On May. 2, 2012, Ascena Retail Group, Inc. and Charming Shoppes, Inc. announced that they have entered into an agreement under which Ascena Retail Group will acquire Charming Shoppes in a cash transaction valued at approximately $890 million. Ascena Retail Group has agreed to make a cash tender offer for all outstanding shares of Charming Shoppes common stock at a price of $7.35 per share.
However, the plaintiff alleges that the $7.35offer undervalues Charming Shoppes, Inc. and is unfair to NASDAQ:CHRS investors. In fact, at least one analyst has set the high target price for NASDAQ:CHRS at $9.00 per share.
Those who are current investors in Charming Shoppes, Inc. (NASDAQ:CHRS) and purchased their NASDAQ:CHRS shares prior to the announcement, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego