SAN DIEGO--(BUSINESS WIRE)--Robbins Umeda LLP, a shareholder rights litigation firm, is interested in helping shareholders of PRIMEDIA Inc. (NYSE: PRM). The firm has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the board of directors of PRIMEDIA in connection with their efforts to sell the company to affiliates of TPG Capital.
If you own stock in PRIMEDIA and would like more information about your shareholder rights, please contact Gregory E. Del Gaizo at 800-350-6003 or via the shareholder information form on our website.
On May 16, 2011, PRIMEDIA announced it has entered into a definitive agreement to be acquired by affiliates of TPG Capital. Under the terms of the agreement, PRIMEDIA shareholders will receive $7.10 per share in cash for each share of PRIMEDIA common stock they own. The transaction is expected to be completed in the third quarter of 2011.
The investigation focuses on whether PRIMEDIA's board is undertaking a fair process to obtain maximum value for its shareholders in light of the company's recent positive financial performance. On April 28, 2011, the company reported adjusted EBITDA of $17.4 million, a $1.7 million increase compared to first quarter 2010. Further, adjusted EBITDA margin increased to 32.3% from 26.6% for first quarter 2010. Of particular note, shareholders holding approximately 58% of the outstanding PRIMEDIA common stock have executed a written consent approving the transaction. Therefore, absent legal action, this transaction could close without the approval of the majority of PRIMEDIA's public shareholders that did not enter into the consent agreements.
Robbins Umeda LLP represents individual and institutional shareholders in derivative, direct, and class action lawsuits. The firm's skilled litigation teams include former federal prosecutors, former defense counsel from top multinational corporate law firms, and career shareholder rights attorneys. Robbins Umeda LLP 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/primedia-inc/
Attorney Advertising. Past results do not guarantee a similar outcome.