Robbins Umeda LLP Announces an Investigation of Flanders Corporation
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 Flanders Corporation (OTCQX: FLDR.PK) in connection with their efforts to sell the company to an affiliate of Insight Equity Holdings LLC. 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 March 19, 2012, Flanders announced that it had entered into a definitive merger agreement to be acquired by Insight Equity. According to the terms of the deal, Insight Equity will acquire all outstanding shares of the company through an all-cash transaction. Pursuant to the agreement, Flanders shareholders will receive $4.40 for each share of the company they own. The transaction is expected to close in the second quarter of 2012.
Robbins Umeda LLP’s investigation focuses on whether Flanders’s board is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company’s recent financial results. On November 2, 2011, Flanders reported strong financial results for the third quarter of fiscal year 2011 that exceeded analyst expectations. The company reported record revenue of $71.7 million, making the third quarter of 2011 the strongest for revenue in the company’s history, and adjusted EBITDA of $6.5 million, an increase of over 12% compared to the third quarter of 2010.
Robbins Umeda attorneys highlight that Flanders 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.