San Diego, CA -- (SBWIRE) -- 02/11/2013 -- An investor in shares of WMS Industries Inc. (NYSE:WMS) filed a lawsuit in effort to block the proposed takeover of WMS Industries Inc. by Scientific Games Corporation at $26.00 per NYSE:WMS share.
Investors who purchased shares of WMS Industries Inc. (NYSE:WMS) prior to January 31, 2013, and currently hold any of those NYSE:WMS shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
On January 31, 2013, Scientific Games Corporation (Nasdaq: SGMS) and WMS Industries Inc. (NYSE: WMS) announced that the companies have entered into an agreement under which Scientific Games has agreed to acquire WMS Industries Inc. for $26.00 in cash per common share or approximately $1.5 billion.
However, the plaintiff alleges that the defendants breaches their fiduciary duties owed to NYSE:WMS stockholders. The plaintiff says that the defendants attempt to sell the company too cheaply via an unfair process. Indeed, shares of WMS Industries Inc. (NYSE:WMS) traded as recently as April 2012 as high as $24.58 per share and during 2011 as high as $47.05 per share.
Furthermore, so the plaintiff, the proposed transaction is the product of a fundamentally flawed process that was designed to ensure the acquisition of WMS Industries Inc by Scientific Games on terms preferential to Scientific Games and WMS Industries' board members, but detrimental to the plaintiff and the other public stockholders of WMS. The plaintiff says that the proposed transaction contains certain deal-protection provisions that essentially preclude superior competing proposals. The directors allegedly failed to reject the inadequate offer and failed to seek other potential bidders for the company, so the complaint.
Those who are current investors in WMS Industries Inc. (NYSE:WMS), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego