Amidst of all the positive news concerning financial performance and operational growth of Quality Distribution Inc (NASDAQ:QLTY), Rigrodsky & Long, P.A. has announced that it will investigate the buyout transaction. As per the reports, there were a few potential legal claims made against the board of directors of Quality Distribution. Rigrodsky & Long, P.A. will check if those allegations were right or wrong.
What’s Expected Out of It:
There were a lot of allegations concerning violations of legal fiduciary duties in the recent buyout transaction. Apax Partners advised Quality Distribution to enter into a transaction agreement that’s valued at almost $800 million. While investigating the case, Rigrodsky & Long, P.A. put some of the interesting questions in front of shareholders such as-
- Do you have the shares of Quality Distribution Inc.?
- Do you want to discuss your rights?
- Do you think that the price of the proposed buyout is too low?
- Did you buy any of your shares before May 7, 2015?
The primary objective of putting these questions in front of the stockholders is to get an idea of their association with the company. The terms and conditions of the buyout agreement ensured that all the public shareholders would get $16 in cash for every Quality Distribution shares they own. Rigrodsky & Long, P.A wants to figure out if the Quality Distribution managed to get the proper value of its shares before entering into an agreement with Apax.
The proposed price of $16 per share looks a little lesser than the market expectations. According to Yahoo Finance, at least one expert would have proposed a price target of $18 per share for Quality Distribution shares. All the shareholders who have any issue with regard to this buyout transaction are advised to contact the authorities as soon as possible to ensure that a suitable action can be taken.
