Robbins Umeda LLP Announces an Investigation of Physicians Formula Holdings, Inc.
August 15 2012 - 8:06PM
Business Wire
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, info@robbinsumeda.com, 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 informed
manner.
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/
Attorney Advertising. Past results do not guarantee a similar
outcome.
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