A lawsuit was filed by an investor in shares of Vitacost.com, Inc. (NASDAQ:VITC) in effort to stop the proposed takeover and NASDAQ:VITC stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 07/16/2014 -- An investor, who currently holds shares of Vitacost.com, Inc. (NASDAQ:VITC) filed a lawsuit in effort to halt the proposed takeover of Vitacost.com, Inc. by The Kroger Co for $8.00 per share.
Investors who purchased shares of Vitacost.com, Inc. (NASDAQ:VITC) and currently hold any of those NASDAQ:VITC shares have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:VITC stockholders by agreeing to sell Vitacost.com, Inc. too cheaply via an unfair process to The Kroger Co.
On July 2, 2014, The Kroger Co. (NYSE:KR) and Vitacost.com, Inc. (Nasdaq:VITC), announced a merger agreement under which the Kroger Co will purchase all outstanding shares of Vitacost.com for $8.00 per share in cash, or approximately $280 million.
However, the plaintiff claims that the takeover of Vitacost.com, Inc by The Kroger Co undervalues Vitacost.com. Indeed, at least one analyst has set the high target price for NASDAQ:VITC shares at $10.00 per share and that NASDAQ:VITC shares traded in the open market as recently as October 2013 as high as $8.77 per share. Vitacost.com, Inc. reported that its annual Total Revenue rose from $220.68 million in 2010 to $382.74 million in 2013. Shares of Vitacost.com, Inc. (NASDAQ:VITC) reached $8.99 per share in July 2013.
In addition, the plaintiff alleges that the process is also unfair to NASDAQ:VITC stockholders. Indeed, certain shareholders of approximately 26.2% of the outstanding shares of Vitacost.com common stock have already agreed to support the transaction and tender their shares in the tender offer.
On July 14, 2014, NASDAQ:VITC shares closed at $7.98 per share.
Those who are current investors in Vitacost.com, Inc. (NASDAQ:VITC) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego