A lawsuit was filed for investors in shares of Costa Inc (NASDAQ:ATX) in effort to halt the proposed takeover and NASDAQ:ATX stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 12/04/2013 -- An investor, who currently hold shares of shares of Costa Inc (NASDAQ:ATX) filed a lawsuit in effort to halt the proposed takeover of Costa Inc by Essilor International for $21.50 per share.
Investors who purchased shares of Costa Inc (NASDAQ:ATX) and currently hold any of those NASDAQ:ATX shares have certain options and should contact the 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:ATX stockholders arising out of the attempt to sell Costa Inc too cheaply via an unfair process to Essilor International
On November 8, 2013, Costa Inc, previously known as A.T. Cross, announced an agreement whereby Essilor International will acquire all outstanding shares of the company for $21.50 per share.
However, the plaintiff alleges that the $21.50-offer is too low and undervalues Costa Inc. Indeed, at least one analyst has set the high target price for NASDAQ:ATX shares at $29.00 per share. Furthermore, Costa’s performance improved recently. For instance, Costa Inc reported that its Total Revenue increase from $141.76 million for the 52 weeks period that ended on Jan. 2, 2010 to $180.51 million for the 52 weeks period that ended on Dec. 29, 2012 and that its respective Net Income rose from $1.56 million to $9.15 million. Shares of Costa Inc grew from $3.79 per share in March 2010 to as high as $21.32 per share on August 30, 2013.
In addition, the plaintiff claims that the process is also unfair to NASDAQ:ATX investors. In fact, under the terms of the merger agreement, certain Costa shareholders owning in the aggregate approximately 34% of the outstanding common shares of Costa have already agreed to vote in favor of the transaction at a forthcoming special meeting to be called to approve it, subject to certain conditions.
On December 3, 2013, NASDAQ:ATX shares closed at $21.78 per share.
Those who are current investors in Costa Inc shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego