Robbins Umeda LLP Announces an Investigation of SRS Labs, Inc.
April 17 2012 - 4:46PM
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 SRS
Labs, Inc. (NASDAQ: SRSL) in connection with their efforts to sell
the company to DTS, Inc. (NASDAQ: DTSI). 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 April 17, 2012, SRS Labs announced that it had entered into a
definitive merger agreement to be acquired by DTS. According to the
terms of the deal, DTS will acquire all outstanding shares of the
company through a cash and stock transaction. Pursuant to the
agreement, SRS Labs shareholders may elect to receive either $9.50
per share in cash or a fixed ratio of 0.31127 shares of DTS common
stock for every share of SRS Labs common stock they own, subject to
proration and adjustment as described in the definitive agreement.
The transaction is expected to close during the third quarter of
2012.
Robbins Umeda LLP's investigation focuses on whether the board
of directors of SRS Labs is undertaking a fair process to obtain
maximum value and adequately compensate shareholders in light of
the company's positive performance and growth prospects. Within the
last year, shares of SRS Labs have traded and closed above the
$9.50 per share offer price currently proposed by DTS.
Additionally, at least one leading market analyst released a target
price for SRS Labs that valued the company's stock at $10.00 per
share, considerably higher than the value currently being offered
by DTS as a part of the transaction.
In addition, the firm is investigating whether self-dealing and
other employment guarantees played a part in the decision by the
board at SRS Labs to enter into the merger agreement with DTS.
According to the terms of the deal, Thomas C.K. Yuen, the Chairman
and Chief Executive Officer of SRS Labs, will receive a new
position on the board of DTS upon completion of the
transaction.
Robbins Umeda attorneys highlight that SRS Labs 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/srs-labs-inc/
Attorney Advertising. Past results do not guarantee a similar
outcome.
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