AEA Advance America, Cash Advance Centers Common Stock

Shareholder rights firm 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 Advance America, Cash Advance Centers, Inc. (NYSE: AEA) in connection with their efforts to sell the company to Grupo Elektra, S.A.B. de C.V. (BMV: ELEKTRA). Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Gregory E. Del Gaizo at (800) 350-6003, info@robbinsumeda.com, or via the shareholder information form on the firm's website.

On February 15, 2012, Advance America announced that it had entered into a definitive agreement to be acquired by subsidiaries of Grupo Elektra in an all-cash transaction. According to the terms of the deal, Advance America shareholders will receive $10.50 for each share of the company they own. The agreement was unanimously approved by Advance America's board of directors. The transaction is expected to close during the first half of calendar year 2012.

Robbins Umeda LLP's investigation focuses on whether Advance America's board is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company's recent positive performance. On October 26, 2011, Advance America reported financial results for the third quarter of fiscal year 2011 that beat analyst expectations. In particular, the company reported diluted EPS of $0.24 on revenue of $158.88 million, while analysts polled by Bloomberg had been expecting EPS of only $0.12 on revenue of $145.00 million. In addition, at least one market analyst has released a target price for Advance America that values the company's stock at $11.00 per share, higher than the value being offered by Grupo Elektra as a part of the proposed transaction.

Finally, Robbins Umeda is investigating whether self-dealing and other employment guarantees played a part in the decision by Advance America to enter into the agreement with Grupo Elektra. According to the terms of the deal, Patrick O'Shaughnessy, the President and Chief Executive Officer of Advance America, along with other key members of the company's senior management team, are expected to continue their roles in the surviving corporation after the merger is completed.

Robbins Umeda attorneys highlight that Advance America 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. For more information, please go to http://www.robbinsumeda.com.

Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/advance-america-cash-advance

Attorney Advertising. Past results do not guarantee a similar outcome.

Grafico Azioni Advance America (NYSE:AEA)
Storico
Da Mag 2024 a Giu 2024

Grafico Azioni Advance America (NYSE:AEA)
Storico
Da Giu 2023 a Giu 2024