Robbins Umeda LLP Announces an Investigation of Delphi Financial Group, Inc.
Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the board of directors of Delphi Financial Group, Inc. (NYSE: DFG) in connection with their efforts to sell the company to Tokio Marine Holdings, Inc. 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 December 21, 2011, it was announced that Delphi Financial entered into a definitive merger agreement pursuant to which Tokio Marine Holdings will acquire all outstanding shares of the company in an all-cash transaction. According to the terms of the deal, Delphi Financial shareholders will receive $43.875 per Class A share and $52.875 per Class B share. Delphi shareholders will also receive $1.00 in cash per share pursuant to a one-time special dividend from Delphi Financial for each share of Class A and Class B stock they own. The transaction is expected to close in the second quarter of 2012.
Robbins Umeda LLP’s investigation focuses on whether Delphi Financial’s Board is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company’s recent positive financial results. On October 25, 2011, the company reported better than expected financial results for the third-quarter of fiscal year 2011 that beat analyst projections. Delphi Financial reported revenue of $473.72 million for the quarter, compared to only $441.34 million in revenue in the same quarter of the previous year, and above analyst estimates of only $466.67 million. Of particular note is that Delphi Financial Chairman and Chief Executive Officer Robert Rosenkranz has agreed to vote his 49.9% stake in Delphi Financial in favor of the transaction.
Robbins Umeda LLP notes that a potentially appropriate course of conduct for Delphi Financial shareholders is to file a class action against Delphi Financial to secure both 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.