Robbins Umeda LLP Is Investigating 99 Cents Only Stores Acquisition for Shareholders
Robbins Umeda LLP, a shareholder rights litigation firm, is investigating possible breaches of fiduciary duty and other violations of state law by members of the board of directors of 99 Cents Only Stores (NYSE: NDN) in connection with their efforts to sell 99 Cents Only to the Schiffer-Gold family and Leonard Green & Partners LP.
On March 11, 2011, 99 Cents Only announced it has received a proposal to be taken private by members of the Schiffer-Gold family and Leonard Green & Partners LP. Under the current proposal, 99 Cents Only shareholders will receive $19.09 in cash for each share of 99 Cents Only common stock they hold.
The investigation seeks to determine whether 99 Cents Only’s board of directors are undertaking a fair process to obtain maximum value for its shareholders. Notably, at least one analyst has set a target price for 99 Cents Only stock at $23.50 per share. Furthermore, on February 2, 2011, 99 Cents Only reported strong third quarter 2011 results of $365.36 million, beating analysts’ expectations.