Robbins Umeda LLP Announces an Investigation of GenOn Energy, 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 GenOn Energy, Inc. (NYSE: GEN) in connection with their efforts to sell the company to NRG Energy, Inc. (NYSE: NRG). 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 July 22, 2012, GenOn announced that it had entered into a definitive merger agreement to be acquired by NRG. According to the terms of the deal, NRG will acquire all of the outstanding shares of GenOn through a stock-for-stock transaction. Pursuant to the agreement, GenOn shareholders will receive 0.1216 shares of NRG common stock in exchange for each GenOn share they own, valuing the proposed consideration at approximately $2.19 per GenOn share. The transaction is expected to close by the first quarter of 2013.
Robbins Umeda LLP’s investigation focuses on whether the board of directors at GenOn is undertaking a fair process to obtain maximum value and adequately compensate GenOn shareholders. On May 10, 2012, the company reported financial results for the first quarter of 2012 that exceeded analyst projections and represented substantial increases over 2011 figures. Specifically, GenOn reported total revenues of $721 million, which beat consensus estimates of $669.2 million by 7.74%. Furthermore, shares of GenOn have closed above the current offer price as recently as May 9, 2012, while at least seven leading market analysts have released target prices that value GenOn stock between $2.50 and $4.50 per share.
Given these impressive financial results, recent target prices, and the performance of GenOn’s common stock, Robbins Umeda LLP is examining the board’s decision to sell GenOn now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects. Robbins Umeda LLP is further examining whether continuing positions at the combined company for four members of GenOn’s board, including its Chairman and Chief Executive Officer, improperly motivated the board to agree to sell the company.
Robbins Umeda LLP attorneys highlight that GenOn 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.