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Diamond Mgt. & Technology Consultants In investor files lawsuit

Lawsuit by investor in Diamond Mgt. & Technology Consultants Inc (NASDAQ:DTPI) alleging breaches of fiduciary duty – DTPI investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com

 
 
mail@shareholdersfoundation.com
mail@shareholdersfoundation.com
PRLog - Aug. 30, 2010 - SAN DIEGO -- An investor in Diamond Mgt. & Technology Consultants In (NASDAQ:DTPI) has filed a lawsuit in State Court alleging breach of fiduciary duty by the members of the board of directors arising out of the attempt to sell Diamond Management & Technology Consultants too cheaply to PricewaterhouseCoopers.

If you are a current investor in Diamond Mgt. & Technology Consultants In (NASDAQ:DTPI) shares, who purchased your DTPI stock prior to Tuesday August 24, 2010, and/or have information relating the investigation, you have certain options and you should contact the Shareholders Foundation, Inc by email at mail@shareholdersfoundation.com or call +1 (858) 779 - 1554.

According to the complaint the plaintiff alleges that the defendants breached their fiduciary duty by the attempt to sell Diamond Management & Technology Consultants through an unfair process at an unfair price. On Tuesday, Aug 24, 2010, Diamond Management & Technology Consultants, Inc. (Nasdaq: DTPI) and PricewaterhouseCoopers LLP announced that they have entered into a merger agreement whereby PricewaterhouseCoopers LLP will acquire all of the outstanding common shares of Diamond Management & Technology Consultants, Inc for $12.50 per share in cash or a transaction value of approximately $378million. According to Diamond Management & Technology Consultants its board of directors has approved the transaction and the offer represents a premium of 31% to Diamond's closing stock price of $9.54 on August 23, 2010.

But DTPI shares traded as early as August 03, 2010 at $10.91 per share, shrinking an adjusted premium to only 12.7%. In June 2010 DTPI shares traded even as high as $11.36 per share, leaving   Diamond Management & Technology Consultants investors with only a meager premium of 9%. During 2007 Diamond Management & Technology Consultants shares traded at over $15 per share and at least one analyst has set a $14.00 price target for Diamond shares.


The plaintiff alleges that the offer undervalues Diamond Management & Technology Consultants, because while Diamond, like the rest of the market, experienced a stock price decline in late 2008 and early 2009, it has rebounded nicely thanks to record financial results. Indeed, in recent months its stock price has traded over 419% above its 2009 lows. Additionally the plaintiff claims, among other things, that defendants abused their power as directors and officer  and agreed to the terms in merger agreement, like a $9million termination fee, a no shop/no talk clause, recurring unlimited matching rights, and voting agreements, that are designed to ensure the sale of Diamond Management & Technology Consultants to one buyer, and one buyer only - PricewaterhouseCoopers LLP -  on terms preferential to PricewaterhouseCoopers.

Those who are current investors in Diamond Management & Technology Consultants Inc (NASDAQ:DTPI) shares, who purchased their  DTPI stock prior to Tuesday, August 24, 2010, and/or have information relating the investigation, have certain options and should contact the Shareholders Foundation, Inc by email at mail@shareholdersfoundation.com or call +1 (858) 779 - 1554.

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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.

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Contact Email:
***@shareholdersfoundation.com Email Verified
Source:Shareholders Foundation, Inc.
Phone:+1-(858)-779-1554
Zip:92108
Location:San Diego - California - United States
Industry:Banking, Business, Finance
Tags:dtpi, diamond mgt technology, diamond management, diamond management technology, diamond consultants, nasdaq dtpi
Shortcut:prlog.org/10894723
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