Kendall Law Group Investigates DivX Inc. Merger for Shareholders

Kendall Law Group, a national securities firm, is investigating DivX Inc. (NASDAQ: DIVX) for shareholders in connection with the proposed sale of DivX to Sonic Solutions. The firm’s investigation seeks to determine whether DivX and its Board breached their fiduciary duties by entering into the agreement without properly shopping for a deal that would provide better value for shareholders. If you are a DivX shareholder and would like additional information about your rights, contact the Kendall Law Group at 877-744-3728 or by email at skendall@kendalllawgroup.com.

On June 2, 2010, the companies announced that they had entered into an agreement for DivX to be acquired by Sonic for a combination of cash and stock. According to the agreement, DivX shareholders will receive $3.75 per share and 0.514 shares of Sonic common stock for each share of DivX held. After this announcement, Sonic share prices fell to as low as $10.21 per share while DivX shares were trading for $8.55 per share, representing a $0.44 premium per share. The agreement is subject to shareholder approval, but included in the agreement is a termination fee, whereby DivX will have to pay $8.35 million if the deal is terminated. Sonic has stated that they expect the acquisition “to potentially double its adjusted earnings in 2012.”

Kendall Law Group was founded by a former federal judge and a former United States Attorney, and includes securities lawyers and former prosecutors who are experienced in complex securities litigation. The firm has been counsel in dozens of merger and acquisition cases nationwide, including some of the largest transactions in the United States.

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