Robbins Umeda LLP Announces an Investigation of SRS Labs, Inc.

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 complete the form below and we will contact you directly.  You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.

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.