Mergers & Acquisitions are an integral part of the financial world. Every day investment bankers arrange M&A transactions in which separate companies are combined to form larger ones. Deals can be worth billions of dollars and often make headlines. Usually, when a larger company purchases a smaller public company they offer the holders a premium to the current stock price. Sometimes, however, management or the board can be acting in their own self interest and not in the interest of the public shareholders. For example, the board may have agreed to sell the company to a particular buyer at an unfair price offer because of post-merger employment opportunities offered by that buyer. Other times, the board simply may not have conducted a sales process in a manner designed to maximize shareholder value. The company may also fail to disclose material information regarding the proposed merger without which public shareholder will be unable to make an informed decision regarding the transaction. In such situations, a class action lawsuit may be the best way for the public shareholders to be heard so that they can get all the information they need and obtain the best possible price for their shares.
The Law Offices of Vincent Wong have significant experience in protecting shareholder rights. Contact a class action attorney for a free consultation regarding any questions you may have about a merger or other circumstance that has impacted your portfolio.