An investigation on behalf of investors of True Religion Apparel, Inc. (NASDAQ:TRLG) over potential wrongdoing in takeover was announced and NASDAQ:TRLG stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 05/13/2013 -- An investigation on behalf of investors, who currently hold NASDAQ:TRLG shares, was announced concerning whether the takeover of True Religion Apparel, Inc. by TowerBrook Capital Partners L.P. at $32.00 per shares is unfair to NASDAQ:TRLG stockholders.
Investors who purchased shares of the True Religion Apparel, Inc. (NASDAQ:TRLG) and currently hold any of those NASDAQ:TRLG shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain officers and directors of True Religion Apparel, Inc. breached their fiduciary duties owed to NASDAQ:TRLG investors in connection with the proposed acquisition.
In Octboer 2012, True Religion Apparel, Inc. announced that after receiving indications of interest from third parties regarding a potential transaction with the Company, the Board of Directors has formed a Special Committee comprised of its non-management directors to explore and evaluate potential strategic alternatives available to the Company, including a possible sale, in order to maximize shareholder value.
Then on March 19, 2013, True Religion Apparel announced that Jeff Lubell has decided to step down as Chairman, Chief Executive Officer, Creative Director and employee of the Company. True Religion Apparel said that Mr. Lubell has agreed to serve as Chairman Emeritus and a creative consultant to the Company he founded and loves for a period of two years.
Shares of True Religion Apparel, Inc. rose on March 20, 2013 to as high as $27.99 per share.
Then on May 10, 2013, True Religion Apparel, Inc. announced that it has entered into a definitive merger agreement with TowerBrook Capital Partners L.P. in a transaction valued at approximately $835 million.Under the terms of the merger agreement, TowerBrook Capital Partners L.P. will acquire all of the outstanding shares of True Religion Apparel, Inc. common stock for $32.00 per share in cash.
However, given that at least on analyst has set the high target price for NASDAQ:TRLG shares at $38.00 per share, the investigation a law firm concerns whether the offer is too low for NASDAQ:TRLG investors.
True Religion Apparel, Inc. reported that its Total Revenue rose from $365.71 million in 2010 to $467.29 million in 2012 and that its Net Income increased from $43.50 million in 2010 to $46.02 million in 2012. Shares of True Religion Apparel, Inc. grew from as low as $8.18 per share in March 2009 to as high as $36.18 per share in February 2012. Currently NASDAQ:TRLG shares are at $26.00 per share.
Therefore the investigation by a law firm concerns whether the True Religion Apparel Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
NASDAQ:TRLG shares closed on May 10, 2013, at $31.60 per share.
Those who are current investors in True Religion Apparel, Inc. (NASDAQ:TRLG) and purchased their True Religion Apparel shares prior to the announcement, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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