Glancy Binkow & Goldberg LLP announces investigation into Vitacost saleGlancy Binkow & Goldberg LLP announces investigation into Vitacost sale
Does the possible sale of Vitacost to Kroger cause the online seller's board of directors to breach their fiduciary duties to stockholders? One law firm has launched an investigation.
July 2, 2014
We are investigating the Board of Directors of VITC for possible breaches of fiduciary duty and other violations of state law in connection with the sale of VITC to Kroger.
VITC’s long-term financial outlook is very positive and yet VITC shareholders will receive only $8 per share, dramatically less than the price target set by some analysts. Kroger is well aware of VITC’s improving financial metrics and is purchasing VITC at a substantial discount. The merger agreement unreasonably limits prospective bids for VITC by (i) prohibiting solicitation of any further bids, and (ii) imposing a termination penalty should VITC receive and accept a superior bid. VITC insiders and their affiliates own significant stock of VITC, and will receive millions of dollars as part of change of control arrangements, and therefore may not be acting in the in the best interest of non-insider shareholders. In light of these facts, our investigation centers on the conduct of VITC’s Board of Directors, who have unanimously approved the transaction, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for VITC given its current financial condition and prospects.
Click here to learn how to join the action: http://www.ademilaw.com/case/vitacostcom or call Guri Ademi toll- free at 866-264-3995. There is no cost or obligation to you.
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