Wolf Haldenstein Adler Freeman & Herz LLP Commences Class Action Lawsuit Against Safeway Inc.
May 27 2014 - 6:20PM
Wolf Haldenstein Adler Freeman & Herz LLP announces that on May
23, 2014 it filed a class action lawsuit in the United States
District Court, Northern District of California (the "Court") on
behalf of all holders of Safeway Inc. ("Safeway" or the "Company")
(NYSE:SWY) common stock. The action names as defendants the
Company, its Board of Directors, Albertson's LLC ("Albertson's"),
Saturn Acquisition Merger Sub, Inc. and Cerberus Capital Management
L.P. for, among other things, violations of Sections 14(a) and
20(a) of the Securities and Exchange Act of 1934 (the "Exchange
Act") and Rule 14a-9 promulgated thereunder.
The complaint arises out of a March 6, 2014 press release issued
by Safeway announcing that the individual defendants had agreed to
sell the Company to Albertson's for $32.50 per Safeway share plus
special dividends and/or CVRs related to the planned disposition of
certain of the Company's "non-core assets," estimated to be worth
$3.65 per share (the "Proposed Transaction"). In addition,
Safeway intends to distribute the 37.8 million shares it owns in
Blackhawk Network Holdings, Inc. to shareholders in mid-April
2014. The Blackhawk distribution has a current value of $3.95
per Company share. All together, the Proposed Transaction will
result in a consideration for Safeway shareholders worth
approximately $40 per share.
Several equity analysts had price targets for Safeway well above
the proposed consideration of $40 per share prior to the
announcement of the Proposed Transaction, and numerous others have
been sharply critical of the deal since it was announced.
The complaint further alleges that, in an effort to secure
shareholder approval for the Proposed Transaction, the individual
defendants filed a materially false and misleading Proxy Statement
with the Securities and Exchange Commission, thereby violating
their duties of candor and full disclosure.
If you wish to serve as lead plaintiff, you must move the Court
no later than July 14, 2014. If you wish to discuss this
action or have any questions, please contact Wolf Haldenstein Adler
Freeman & Herz LLP at 270 Madison Avenue, New York, New York
10016, by telephone at (800) 575-0735 (Benjamin Y. Kaufman, Greg
Stone) via e-mail at classmember@whafh.com, or gstone@whafh.com or
visit our website at www.whafh.com. All e-mail correspondence
should make reference to "Safeway".
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