Federman & Sherwood Announces Filing of Class Action Lawsuit Against the Board of Directors for DFC Global Corp. in Connection with the Proposed Sale of the Company
Oklahoma City, OK (May 2, 2014) – On April 8, 2014, a class action lawsuit was filed in the Delaware Court of Chancery against the officers and directors of DFC Global Corp. [NASDAQ: DLLR] (the “Company” or “DFC Global”), alleging that the proposed sale of all of the Company’s outstanding stock to Lone Star Funds, and its affiliate, LSF8 Sterling Parent, LLC and LSF8 Sterling Merger Company (“Lone Star”), offers an unfair and inadequate consideration to current shareholders of DFC Global. It is also alleged that the controlling Merger Agreement contains preclusive deal protection devices that are not considered beneficial to DFC Global shareholders, but rather, would benefit Lone Star.
Under the terms of the current buyout proposal, DFC Global shareholders are to receive $9.50 in cash for each share of DFC Global common stock they own. This represents only a 5.8% premium over the closing price of $8.98 on April 1, 2014, the day before the buyout was announced, and is significantly below the average one day premium of nearly 24% for comparable transactions within the past 3 years.
Federman & Sherwood would like to speak with any DFC Global investors who question whether: (1) the information being provided to DFC Global shareholders makes all necessary disclosures with respect to the proposed sales transaction; (2) whether the proposed sale to Lone Star offers true and adequate long-term value to DFC Global shareholders; and, (3) whether DFC Global could have received a higher per share price for its shareholders had the officers and directors aggressively sought other purchasers for the Company.
If you currently own common stock in DFC Global and purchased your shares before April 2, 2014, please contact our office or click here to obtain a shareholder form to be added to our class action database for DFC Global. Federman & Sherwood has over 30 years of extensive nationwide experience in representing investors in securities, derivative and merger-related shareholder class actions, and has been appointed as lead counsel in multiple complex cases across the country.
Posted on Fri, May 2, 2014
by K. Lynn Nunn filed under