An investigation on behalf of investors in shares of Sealy Corporation (NYSE:ZZ) over potential breaches of fiduciary duties by certain officers and directors at Sealy Corporation in connection with the board of directors relationship with Kohlberg Kravis Roberts & Co. L.P.
Investors who purchased shares of Sealy Corporation (NYSE:ZZ) have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Sealy Corporation (NYSE:ZZ) concerns whether certain directors and officers at Sealy Corporation breached their fiduciary duties.
Sealy Corporation reported that its increase in its Total Revenue from $1.17billion for a 52weeks period ending on Nov. 29, 2009 to $1.23billion for a 52weeks period ending on Nov. 27, 2011, its Net Income of $13.48million for the 52weeks period ending on Nov. 29, 2009 turned into a Net Loss of $13.74million for a 52weeks period ending on Nov. 28, 2010, respectively a Net Loss of $9.89million for 52weeks period ending on Nov. 27, 2011.
Then on March 11, 2012 a letter was sent to the board of directors of Sealy Corporation by H Partners Management, LLC, which owns approximately 14.5% of Sealy Corporation’s outstanding shares, expressing concern that the Sealy Corporation Board might have been advancing the interests of Kohlberg Kravis Roberts & Co. L.P. over the interests of all Sealy Corp. shareholders.
According to an article published on March 12, 2012, H Partners Managements’ letter complains that Kohlberg Kravis Roberts & Co. L.P. receives “disproportionate representation of at least 78% on Sealy’s Board, including three direct representatives on the board,” while the 53.8% non-KKR owners of the Company have no board representation, and Sealy Corporation is saddled with “high debt, bad management” and “high fee payouts.”
Shares of Sealy Corporation (NYSE:ZZ) dropped from over $17.50 per share in February 2007 to $1.45 in February 2011 and closed on March 23, 2012 at $1.83 per share.
Those who purchased shares of Sealy Corporation (NYSE:ZZ) and currently hold those Sealy Corporation (NYSE:ZZ) shares, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North – Suite 423
92108 San Diego