Physicians Formula Holdings, Inc. (MM) (NASDAQ:FACE)
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3 Years : From Nov 2011 to Nov 2014
Shareholder rights firm Robbins
Umeda LLP has commenced an investigation into possible breaches of
fiduciary duty and other violations of the law by members of the board
of directors of Physicians Formula Holdings, Inc. (NASDAQ: FACE) in
connection with their efforts to sell the company to affiliates of
Swander Pace Capital. Concerned shareholders who would like more
information about their rights and potential remedies can contact
attorney Gregory E. Del Gaizo at (800) 350-6003, firstname.lastname@example.org,
or via the shareholder
information form on the firm's website.
On August 15, 2012, Physicians Formula announced that it had entered
into a definitive merger agreement to be acquired by Swander Pace.
According to the terms of the deal, Swander Pace will acquire Physicians
Formula for $4.25 per share in cash. The acquisition has already been
approved by the board of directors of Physicians Formula. Upon close of
the merger, which is expected to occur later this year, Physicians
Formula will be privately owned and will continue to be operated by the
company's current management team and employees.
Robbins Umeda LLP's investigation focuses on whether the board of
directors at Physicians Formula is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders, or seeking to
benefit themselves. At least one analyst, at Imperial Capital, has set a
price target for Physician Formula at $5.00 per share, higher than the
current offer of $4.25 per share.
Moreover, on August 14, 2012, Physicians Formula reported financial
results for the second quarter of 2012 that exceeded analyst projections
and represented substantial increases over 2011 figures. Specifically,
Physicians Formula reported a total earnings per share of $0.13, which
beat analyst estimates of $0.028 by 364%. Further, total revenue for the
quarter of $26.1 million represents an increase of 25.2% over total
revenues of $20.9 million during the same quarter of the previous year.
In addition, net income was $2 million compared to a net loss of $0.3
million for the same quarter in 2011.
Given these impressive financial results and higher target price,
Robbins Umeda LLP is examining the board's decision to sell Physicians
Formula now rather than allow shareholders to continue to participate in
the company's continued success and future growth prospects.
Robbins Umeda LLP attorneys highlight that Physicians Formula
shareholders have the option to file a class
action lawsuit against the company to secure the best possible price
for the company's shareholders and the disclosure of material
information to shareholders so they can vote on the transaction in an
Robbins Umeda LLP is a nationally recognized leader in securities
litigation and shareholder rights law. The firm represents individual
and institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than $1
billion of value for themselves and the companies in which they have
invested. For more information, please go to http://www.robbinsumeda.com.
Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/physicians-formula/
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