NEW YORK, March 7, 2013 /PRNewswire/ -- Tripp Levy
PLLC, a leading national securities and shareholder rights law
firm, announces that it is investigating the acquisition of Hot
Topic Inc. (NASDAQ: HOTT) on behalf of shareholders in connection
with the sale of the company to the private equity firm Sycamore
Partners.
Under the terms of the transaction, Hot Topic shareholders will
receive $14 for each share of Hot
Topic common stock they own. The investigation concerns whether the
Hot Topic senior management and board of directors breached their
fiduciary duties to stockholders by not obtaining the highest price
possible for shareholders while obtaining personal benefits for
themselves in selling the company at this price. Indeed, analysts
have projected the company's true takeover value is worth at least
$1.40 per share. Moreover, the
company has no debt and has at least $1.40 per share of cash on its books, meaning the
purchase price is closer to $12.60
per share rather than $14 (since that
cash will go to Sycamore Partners.) In connection with
selling the company at this price, the company's CEO and Chairman
of the board and significant shareholder of approx. 9% of the
outstanding shares, are voting in favor of the deal.
If you own HOTT common stock and you wish to discuss this matter
with us, or have any questions concerning your rights and interests
with regard to this matter, please contact
Tripp Levy
Tripp Levy PLLC
125 East 82nd
Street
9th Floor
New York, New
York
Toll Free: 877-772-3975
Email: contact@tripplevy.com
Tripp Levy PLLC is a national law firm that specializes in
mergers & acquisitions, takeover litigation, shareholder
rights, and corporate governance matters in state and federal
courts throughout the United
States. Attorney advertising. Prior results do not guarantee
a similar outcome.
Contacts
Tripp Levy PLLC
Tripp Levy, 877-772-3975
contact@tripplevy.com
SOURCE Tripp Levy PLLC