Robbins Umeda LLP Announces an Investigation of Adams Golf, Inc.
March 20 2012 - 9:24PM
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 Adams
Golf, Inc. (NASDAQ: ADGF) in connection with their efforts to sell
the company to the Adidas Group. 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 March 19, 2012, Adams Golf announced that it had entered into
a definitive merger agreement to be acquired by Adidas. According
to the terms of the deal, Adidas will acquire all outstanding
shares of the company through an all-cash transaction. Pursuant to
the agreement, Adams Golf shareholders will receive $10.80 for each
share of the company they own. The transaction is expected to close
in mid-2012.
Robbins Umeda LLP's investigation focuses on whether Adams
Golf's board is undertaking a fair process to obtain maximum value
and adequately compensate shareholders in light of the company's
recent positive financial results. On March 6, 2012, Adams Golf
reported strong financial results for fiscal year 2011. The company
reported record net sales of $96.5 million for the year ended
December 31, 2011, a 12% year-over-year increase compared to the
$86.2 million in net sales reported for the prior year.
Additionally, Adam's Golf reported that the company realized a net
profit of $14.5 million, or $1.79 per fully diluted share, for
fiscal year 2011, compared to only $5.0 million, or $0.66 per fully
diluted share, during the previous fiscal year.
In addition, the firm is investigating whether self-dealing and
other employment guarantees played a part in the decision by Adams
Golf to enter into the agreement with Adidas. According to the
terms of the deal, several current officers at Adams Golf are
slated to continue in their current roles at the surviving
corporation after the completion of the transaction.
Robbins Umeda attorneys highlight that Adams Golf 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/adams-golf/
Attorney Advertising. Past results do not guarantee a similar
outcome.
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