Robbins Umeda LLP Announces an Investigation of Goodrich Corporation
Robbins Umeda LLP, a shareholder rights litigation 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 Goodrich Corporation (NYSE: GR) in connection with their efforts to sell the company to United Technologies Corporation (NYSE: UTX)
On September 22, 2011, Goodrich announced that it had entered into a definitive merger agreement pursuant to which the United Technologies will acquire all outstanding shares of the company in an all cash transaction. According to the terms of the deal, shareholders will receive $127.50 for each share of Goodrich they own. The transaction is expected to close in the second or third quarter of 2012.
Robbins Umeda LLP’s investigation focuses on whether Goodrich’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 July 21, 2011, the company announced second quarter results for fiscal year 2011 that greatly exceeded analyst expectations. Goodrich reported revenue of $2.0 billion for the second quarter of 2011, a 17% increase over the $1.72 billion reported during the same period last year, and well above analyst estimates of $1.94 billion.
Additionally, the company’s strong performance in sales growth and margins has allowed it to increase its net income per diluted share outlook for 2011. Its revised outlook of $5.85 – $6.00 per diluted share equates to a growth rate of more than 30% in net income per diluted share for 2011, compared to 2010. As result, a recent target price released for the company valued shares of Goodrich at $130.00 per share, well above the amount offered by United Technologies.
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