The Law Office of Joseph Klein Investigates Possible Breach of Fiduciary Duty by the Board of Alloy Inc. - ALOY
July 07 2010 - 7:46PM
Business Wire
The Law Office of Joseph Klein is investigating the Board of
Directors of Alloy Inc. (“Alloy” or the “Company”) (NasdaqGM: ALOY)
for possible breaches of fiduciary duty and other violations of
state law in connection with their attempt to sell the Company to
an investor group led by ZelnickMedia ("ZelnickMedia"). Under the
terms of the transaction, Alloy shareholders will receive $9.80 in
cash for each Alloy share of common stock they own for a total
transaction value of approximately $126.5 million.
The investigation focuses on whether Alloy’s Board breached
their fiduciary duties to stockholders by failing to adequately
shop the Company before entering into this transaction and whether
ZelnickMedia is underpaying for Alloy shares, thus unlawfully
harming Alloy’s stockholders. In particular, the Company had
revenues (ttm) of $211.48 million, has in excess of $23 million in
cash with no debt and a has book value of $8.69 per share, and yet
is being sold for only approximately $126.5 million, or $9.80 per
share.
If you own Alloy shares and wish to obtain additional
information about this investigation and what is being done to
advance the shareholders’ interests, please contact Joseph Klein,
Esq. directly, via email at jk@kleinstocklaw.com, by telephone at
(718) 947-0005 or visit
http://www.kleinstocklaw.com/alloy-aloy.html
Joseph Klein, Esq. is an experienced attorney and has also
practiced as a Certified Public Accountant. Mr. Klein represents
investors and participates in securities litigations involving
financial fraud throughout the nation.
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