mail@shareholdersfoundation.com
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Nov 17, 2009 -
An investigation on behalf of current in Youbet.com, Inc. (Public, NASDAQ:UBET)
, who purchased the shares before November 11, 2009, over potential breaches of fiduciary duty and other violations of state law in connection with an alleged unfair takeover price was announced.
If you are currently an investor in shares of Youbet.com, Inc. (Public, NASDAQ:UBET)
, and purchased the shares before November 11, 2009, and / or have additional information relating to the investigation, you should contact the Shareholders Foundation, Inc. at:
Email: mail@shareholdersfoundation.com or at: +1 (858) 779 - 1554
The investigation by a law firm focus on potential breaches of fiduciary duty and other violations of state law by the Board of Directors of Youbet.com arising out of their attempt to sell Youbet.com to Churchill Downs Inc. On November 11, 2009 Youbet.com, Inc. (NASDAQ: UBET) (“Youbet”) and Churchill Downs Incorporated (NASDAQ: CHDN) and announced they have entered into a definitive merger agreement under which Churchill Downs Inc would acquire all of the outstanding shares of Youbet.com in a transaction valued at approximately $126.8 million based on the Tues. Nov. 10, 2009, closing price of CDI common stock. Under the terms of the transaction, Youbet.com shareholders would receive a fixed ratio of 0.0598 shares of Churchill Downs Inc common stock plus $0.97 in cash for each share of Youbet.com common stock they own. Based on the closing price of Churchill Downs Inc common stock on Tues. Nov. 10, 2009, the transaction represents a per-share value of Youbet.com common stock of approximately $2.84. According to Youbet.com the merger has been unanimously approved by the Board of Directors of both companies and the offer represents an implied premium of 28% for Youbet.com shareholders over the closing price of Youbet common stock on Tues. Nov. 10, 2009.
But according to an investigation by a law firm “the transaction appears to be unfair” to current investors of Youbet.com, Inc. (NASDAQ:UBET)
because the “offer to purchase Youbet.com, Inc. (UBET) appears opportunistically timed to take advantage of the current economic downturn”. The investigation “concerns whether the Youbet.com Board of Directors breach their fiduciary duties to Youbet.com, Inc. (UBET) shareholders by agreeing to sell UBET at an unfair price thereby harming Youbet.com, Inc. and its shareholders”
, “whether the directors of Youbet.com, Inc. may have breached their fiduciary duties by not acting in UBET shareholders' best interests”, and “the Company may not have adequately shopped itself around before entering into this transaction and, pursuant to this proposed transaction, Churchill Downs Inc may be underpaying for Youbet.com, Inc, thus unlawfully harming UBET shareholders”
. Youbet.com, Inc. shares UBET traded at about $2.70 per share after the announcement and at about $2.45 per share during the days before the announcement. YouBet stock was trading at $3.71 a share as recently as August 3, 2009 and was trading at $3.50 a share on June 25, 2009. The investigation concerns “whether the Youbet Board of Directors breached their fiduciary duties to Youbet shareholders given that Youbet shares traded as high as $3.91 as recently as July 24, 2009 and the mean price target set by analysts for Youbet stock is $3.88 per share with at least one analyst setting a $4.00 price target.” Youbet.com, Inc., Woodland Hills, California, is a diversified provider of technology and pari-mutuel horse racing content for consumers through Internet and telephone platforms and a supplier of totalizator systems, terminals and other pari-mutuel wagering services and systems to the pari-mutuel industry. Youbet.com, Inc. reported in 2007 Total Revenue of $122.49million and in 2008 Total Revenue of $109.03million.
Those who are currently investors in shares of Youbet.com, Inc. (NASDAQ:UBET)
, and purchased the shares before November 11, 2009, and / or have additional information relating to the investigation, should contact the Shareholders Foundation, Inc. at:
Email: mail@shareholdersfoundation.com or 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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http://www.prlog.org/10415998/1Advertising. The Shareholders Foundation, Inc. is an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
