First Advantage Investor Class Action Lawsuit

PRLog (Press Release) - Jul 27, 2009 -
SAN DIEGO, CA (Shareholders Foundation) – An investor with First Advantage has filed a proposed securities class action lawsuit in the Court of Chancery of the State of Delaware behalf of current investors of First Advantage Corporation (Public, NASDAQ:FADV), who own the Class A common stock of First Advantage Corporation,  over alleged breaches of fiduciary duty and other violations of state law in connection with an alleged unfair takeover price were announced.
   
If you are currently an investor in First Advantage Corporation (Public, NASDAQ:FADV) and purchased the shares (Class A common stock) before June 29, 2009 you have certain options and you should contact the Shareholders Foundation, Inc. at:

Email: mail@shareholdersfoundation.com

Or call us at: +1 (858) 779 - 1554

According to the complaint the plaintiff alleges that “.The Proposed Transaction significantly undervalues First Advantage. First American has chosen this particular moment in time to buy out First Advantage’s minority shareholders in breach of the fiduciaries duties it owes to them.” The complaint alleges” that the Proposed Transaction is not entirely fair and is an opportunistic attempt by First American to benefit itself at the expense of First Advantage’s shareholders, to whom it owes fiduciary duties”. The First American Corporation (NYSE: FAF), America's largest provider of business information, announced on Monday, June 29, 2009, that it has made an offer to acquire the remaining shares of its 74%owned subsidiary, First Advantage Corporation (Nasdaq: FADV). Under the terms of the offer, First Advantage's shareholders would receive, at a fixed exchange ratio, 0.5375 of a share of First American common stock for each share of First Advantage common stock. The proposed exchange ratio represents an offer price of $14.04 per share and a 10.2 percent premium to First Advantage's stock price, based on First American's and First Advantage's closing stock prices on Friday, June 26, 2009.
The offer values First Advantage at $837 million. Since First American already owns approximately 74% of Frist Advantage the remaining value for First American to takeover First Advantage is with 59.76million shares in total presently with 15.5376million shares (26%remaining outstanding shares) at $14.04 per share $218.148million. First Advantage said the offer is being reviewed by a committee of independent directors. Shares of First Advantage increased after the announcement and closed with $150.7 per share, significantly higher then the proposed takeover price. Shares of First Advantage Corp reached a 52weekHigh of $18.75 per share, $22.37 per share in April 2008, and $26.78 per share in 2007.  First Advantage Corporation is located in St. Petersburg, Florida and is an international provider of risk mitigation and business solutions. First Advantage operates in six primary business segments: Lender Services, Data Services, Dealer Services, Employer Services, Multifamily Services, and Investigative and Litigation Support Services. First Advantage reported $824.27million in Total Revenue with a net income of $138.11million in 2007 and $779.96million in Total Revenue with a net income of $34.86million in 2008.

Those who currently are investors in First Advantage Corporation (Public, NASDAQ:FADV) and purchased the shares (Class A common stock) before June 29, 2009 have certain options and should contact the Shareholders Foundation, Inc. at:

Email: mail@shareholdersfoundation.com

Or call us at: +1 (858) 779 - 1554

Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423 -
92108 San Diego
Tel:+1-(858)-779-1554
Fax:+1-(858)-605-5739
mail@shareholdersfoundation.com
www.ShareholdersFoundation.com
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