Robbins Umeda LLP Announces an Investigation of the Acquisition of DivX, Inc. by Sonic Solutions

Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the Board of Directors of DivX, Inc. ("DivX" or the "Company") (NASDAQ: DIVX) in connection with their actions in causing DivX to enter into a definitive merger agreement to be acquired by Sonic Solutions ("Sonic Solutions") (NASDAQ: SNIC). If the transaction is completed, DivX shareholders will receive a combination of cash and stock equal to $3.75 in cash and 0.514 shares of Sonic Solutions common stock for each share of DivX they hold, for an implied value of approximately $9.83 per DivX share. If approved, the transaction is expected to be completed by September 2010.

Robbins Umeda LLP's investigation concerns whether the Board of Directors of DivX undertook a fair process to obtain fair consideration for all shareholders of DivX. Before the announcement of the proposed acquisition, at least two analysts had price targets of at least $10.00 per share. Nevertheless, the Company's fiduciaries are attempting to sell the Company now at a price below these targets. Notably, Sonic Solutions stated that it expects to add two members from DivX's Board of Directors to its own board sometime after the closing of the transaction.

If you are a shareholder of DivX and would like more information about your rights as a shareholder, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at inquiry@robbinsumeda.com.

Robbins Umeda LLP is a California-based law firm with significant experience representing investors in merger-related shareholder class actions, shareholder derivative actions, and securities fraud class actions. For more information about the firm, please go to http://www.robbinsumeda.com.

Divx, Inc. (MM) (NASDAQ:DIVX)
Historical Stock Chart
From Jun 2024 to Jul 2024