Robbins Umeda LLP Announces an Investigation of GeoResources, 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 GeoResources, Inc. (NASDAQ: GEOI) in connection with their efforts to sell the company to Halcon Resources Corporation (NYSE: HK). 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 25, 2012, GeoResources announced that it had entered into a definitive merger agreement to be acquired by Halcon. According to the terms of the deal, Halcon will acquire all outstanding shares of the company through a cash and stock transaction. Pursuant to the agreement, GeoResources shareholder will receive $20.00 in cash and 1.932 shares of Halcon common stock for each share of the GeoResources they own. The transaction is expected to close during the third quarter of 2012.
Robbins Umeda LLP’s investigation focuses on whether the board of GeoResources is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company’s recent financial results. On March 13, 2012, GeoResources reported financial results that showcased record revenue, EBITDAX, and adjusted net income for the full year and fourth quarter of 2011. Specifically, the company reported that during the fourth quarter of 2011 revenue increased 51.7% to $41.1 million, EBITDAX increased 77.5% to $26.8 million and Net Income increased 98.9% to $10.6 million over financial results reported for the fourth quarter of 2010. Additionally, GeoResources reported that during the fourth quarter of 2011 EPS increased 57.7% to $0.41, compared to EPS of only $0.205 during the same quarter in the previous year.
Furthermore, as many as six leading market analysts have released target prices for GeoResources that value the company’s stock between $38.00 and $43.00 per share, considerably higher than the value currently being offered by Halcon as a part of the proposed transaction. Given these target prices and the company’s impressive financial results, Robbins Umeda LLP is examining the board’s decision to sell GeoResources rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Robbins Umeda LLP attorneys highlight that GeoResources 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.