San Diego, CA -- (ReleaseWire) -- 05/21/2013 -- An investor, who currently holds NASDAQ:TRLG shares, filed a lawsuit in effort to stop the proposed takeover of True Religion Apparel, Inc. by TowerBrook Capital Partners L.P. at $32.00 per NASDAQ:TRLG share.
Investors who purchased a large amount of shares of the True Religion Apparel, Inc. (NASDAQ:TRLG) prior to May 10, 2013 and currently hold any of those NASDAQ:TRLG 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:TRLG stockholders by agreeing to sell the company too cheaply via an unfair process.
On May 10, 2013, True Religion Apparel, Inc. announced that it has entered into a merger agreement with TowerBrook Capital Partners L.P. in a transaction valued at approximately $835 million.Under the terms of the merger agreement, TowerBrook Capital Partners L.P. will acquire all of the outstanding shares of True Religion Apparel, Inc. common stock for $32.00 per share in cash.
However, the plaintiff claims that the $32-offer is too low and undervalues the company. Indeed, at least on analyst has set the high target price for NASDAQ:TRLG shares at $38.00 per share. Furthermore, True Religion Apparel’s financial performance improved lately. For instance, True Religion Apparel, Inc. reported that its Total Revenue rose from $365.71 million in 2010 to $467.29 million in 2012 and that its Net Income increased from $43.50 million in 2010 to $46.02 million in 2012. Shares of True Religion Apparel, Inc. grew from as low as $8.18 per share in March 2009 to as high as $36.18 per share in February 2012. Currently NASDAQ:TRLG shares are at $26.00 per share.
NASDAQ:TRLG shares closed on May 20, 2013, at $31.56 per share.
Those who are current investors in True Religion Apparel, Inc. (NASDAQ:TRLG) and purchased their True Religion Apparel 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