DALLAS, Nov. 11, 2011 /PRNewswire/ -- Former United
States Securities and Exchange Commission attorney Willie Briscoe
and the securities litigation firm of Powers Taylor, LLP are
investigating the sale of Pinnacle Data Systems, Inc. ("Pinnacle
Data" or "PNS") (AMEX: PNS) to Avnet, Inc. for shareholders.
Under the proposed acquisition agreement, Pinnacle Data
shareholders will only receive $2.40
in cash for each share of Pinnacle Data/PNS stock owned, which
represents a premium of only $.05
above the high closing price of PNS stock within the 120-day period
preceding the announcement.
If you are an affected investor, and you want to learn more
about the lawsuit or join the action, contact Patrick Powers at Powers Taylor, LLP, toll free
(877) 728-9607, via e-mail at patrick@powerstaylor.com, or
Willie Briscoe at The Briscoe Law
Firm, PLLC, (214) 706-9314, or via email at
WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to
you.
The definitive acquisition agreement involves an all cash
transaction valued at approximately $22
million. The transaction is expected to close in early
2012.
The investigation centers on whether Pinnacle Data shareholders
are receiving adequate compensation for their shares in the buyout,
whether the transaction undervalues Pinnacle Data stock, and
whether Pinnacle Data's board attempted to obtain the highest share
price for all shareholders prior to agreeing to the deal.
According to shareholder rights attorney Willie Briscoe, "particularly troubling is the
fact that Pinnacle Data shares closed at $2.35 per share as recently as July 26, 2011. The acquisition price
represents a premium of only 2% over this value." In
addition, Pinnacle Data recently released positive financial
results for the company, including reporting seven sequential
quarters of profitability. "Based on these and other factors, we
believe that the transaction may significantly undervalue Pinnacle
Data/PNS stock. Our lawsuit will seek to obtain the highest
share price for all shareholders," said Briscoe.
The Briscoe Law Firm, PLLC is a full service business litigation
and shareholder rights advocacy firm with more than 20 years of
experience in complex litigation and transactional matters.
Powers Taylor, LLP is a boutique litigation law firm that
handles a variety of complex business litigation matters, including
claims of investor and stockholder fraud, shareholder oppression,
shareholder derivative suits, and security class actions.
SOURCE Powers Taylor, LLP