Robbins Umeda LLP Announces an Investigation of Pep Boys – Manny, Moe & Jack
Robbins Umeda has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by members of the board of directors of Pep Boys – Manny, Moe & Jack (NYSE: PBY) in connection with their efforts to sell the company to The Gores Group. 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 January 30, 2012, it was announced that Pep Boys entered into a definitive merger agreement pursuant to which The Gores Group will acquire all outstanding shares of Pep Boys’ common stock in an all-cash transaction. According to the terms of the deal, Pep Boys’ shareholders will receive $15.00 for each share of the company they own. The transaction is expected to close during the second quarter of 2012.
Robbins Umeda LLP’s investigation focuses on whether Pep Boys’ Board is undertaking a fair process to obtain maximum value and adequately compensate shareholders. At least two leading market analysts have released target prices for Pep Boys that value the company’s stock at $16.00 and $17.00 per share, considerably higher than the value being offered by The Gores Group as a part of the proposed transaction.
In addition, the firm is investigating whether self-dealing and other employment guarantees played a part in the decision by Pep Boys’ Board to enter into the agreement with The Gores Group. According to the terms of the deal, Mike Odell, Pep Boys’ President and Chief Executive Officer, along with other members of the senior management team, are slated to continue in their roles with the company after the completion of the transaction.
Robbins Umeda attorneys highlight that Pep Boys’ 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.