Robbins Umeda LLP Announces an Investigation of Quest Software, Inc.
March 09 2012 - 7:04PM
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 Quest
Software, Inc. (NASDAQ: QSFT) in connection with their efforts to
sell the company to affiliates of Insight Venture Partners.
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 9, 2012, Quest Software announced that it had entered
into a definitive merger agreement to be acquired by affiliates of
Insight in an all-cash transaction. According to the terms of the
deal, Quest Software shareholders not affiliated with the buyout
group will receive $23.00 for each share of the company they
own.
Robbins Umeda LLP's investigation focuses on whether Quest
Software'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. Notably, the
transaction represents only an 18% premium to Quest Software's
stock price. In contrast, over the past 10 years, buyers have paid
an average premium of over 49% in comparable transactions,
according to data from Bloomberg.
Further, on February 14, 2012, Quest Software announced
financial results for the fourth quarter of fiscal year 2011 that
beat analyst expectations. The Company reported quarterly revenue
of $245.89 million, a 13.4% increase compared to the prior year's
fourth quarter revenues of $216.8 million and better than analyst
expectations of $242.8 million. In addition, Quest Software traded
higher than the offer price as recently as July 11, 2011, trading
as high as $23.03, and last closed over the offer price on July 8,
2011, closing at $23.03. Also, at least two market analysts
released target prices for Quest Software that values the company's
stock at $26.00 and $29.00 per share, respectively, which is higher
than the value being offered by Insight as a part of the proposed
transaction.
Robbins Umeda attorneys highlight that Quest Software
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/quest-software/
Attorney Advertising. Past results do not guarantee a similar
outcome.
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