Robbins Umeda LLP Is Investigating Fremont Michigan InsuraCorp, Inc. Acquisition for Shareholders
Robbins Umeda LLP, a shareholder rights litigation firm, is interested in helping shareholders of Fremont Michigan InsuraCorp, Inc. (OTCQB: FMMH). The firm has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the board of directors of Fremont in connection with their efforts to be acquired by the Auto Club Insurance Association (ACIA).
On April 18, 2011, Fremont and ACIA announced they entered into a definitive merger agreement under which ACIA will acquire Fremont for approximately $67.7 million. Under the current agreement, Fremont shareholders will receive $36.15 in cash for each share of Fremont common stock they hold. The transaction is expected to close in the third quarter of 2011.
The investigation focuses on whether Fremont’s board is undertaking a fair process to obtain maximum value for its shareholders, particularly in light of the company’s recent strong performance. Specifically, on February 22, 2011, Fremont reported fourth quarter 2010 revenues of $17.1 million, an increase of 12.8% from the fourth quarter of 2009, reflecting strength in net premiums and realized gains on investments. Also of interest, the current Fremont management, including President and Chief Executive Officer Dick Dunning, will remain in place if the acquisition of Fremont closes.
If you own stock in Fremont Michigan InsuraCorp and would like more information about your shareholder rights, please complete the form below and we will contact you directly. We also welcome you to call us at 800-350-6003.