An investor in NASDAQ:LCRY shares filed a lawsuit in effort to stop the proposed acquisition of LeCROY Corporation by Teledyne Technologies Incorporated at $14.30 per NASDAQ:LCRY share.
Investors who purchased shares of LeCROY Corporation (NASDAQ:LCRY) prior to May 29, 2012 and currently hold any of those NASDAQ:LCRY shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:LCRY investors arising out of their attempt to sell the company at an unfair price via an unfair process.
On May 29, 2012, Teledyne Technologies Incorporated (NYSE:TDY) and LeCroy Corporation (NASDAQ:LCRY) announced that they have entered into an agreement that provides for the merger of LeCroy Corporation with a wholly-owned subsidiary of Teledyne Technologies Incorporated. Pursuant to the proposed transaction, Teledyne Technologies Incorporated will acquire all of the outstanding common shares of LeCroy for $14.30 per share payable in cash.
Shares of LeCROY Corporation (NASDAQ:LCRY) jumped from $9.14 per share on Friday, May 25, 2012 to $14.28 on May 29, 2012.
However, the plaintiff claims that the $14.30offer is unfair to LeCROY Corporation stockholders and undervalues the company. In fact, NASDAQ:LCRY shares traded as high as $15.42 per share in early 2011 and at least one analyst has set the high target price for NASDAQ:LCRY shares at $16.00 per share.
LeCROY Corporation’s financial performance improved over the past recent years. Its Total Revenue rose from $129.34million for the 53weeks period ending on July 3, 2010 to $178.10million for the 52weeks period ending on July 2, 2011 and its Net Loss of $0.26million for the 53weeks period ending on July 3, 2010 turned into a Net Income of $3.12million for the 52weeks period ending on July 2, 2011.
Additionally,the plaintiff alleges that the process is unfair to NASDAQ:LCRY investors. Indeed, certain LeCroy directors and executive officers, including founder Walter LeCroy, have already agreed to vote their shares in favor of the transaction.
Those who are current investors in LeCROY Corporation (NASDAQ:LCRY) and purchased their LeCROY Corporation shares prior to the announcement, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North – Suite 423
92108 San Diego