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Follow on Google News | rue21, inc. Investor Alert: Lawsuit to Stop Takeover under current Conditions filedA lawsuit was filed by an investor in shares of rue21, inc. in effort to stop the proposed takeover and NASDAQ-RUE stockholders should contact the Shareholders Foundation.
Investors who purchased shares of rue21, inc. prior to May 20, 2013, and currently hold any of those NASDAQ-RUE shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554. On May 23, 2013, rue21, inc. and Apax Partners announced an agreement under which funds advised by Apax Partners will acquire all outstanding shares of rue21 for $42.00 per share in cash. The transaction is valued at approximately $1.1 billion. However, the plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ-RUE stockholders by agreeing to sell the company too cheaply via an unfair process. The plaintiff claims that the $42.00-offer is unfair to NASDAQ-RUE stockholders. Indeed, the performance of rue21, inc. improved lately. For instance, it reported that its Total Revenue rose from $525.60 million for the 52 weeks period that ended on Jan. 30, 2010 to $901.89 million for the 53 weeks period that ended on Feb. 2, 2013 and that its respective Net Income increased from $22.02 million to $43.90 million. Furthermore, the plaintiffs alleges that the process is unfair to NASDQQ:RUE investors as well. Indeed, the SKM II funds, which collectively own approximately 30% of the outstanding shares of rue21, have already entered into a support agreement to vote their shares in favor of the transaction with Apax Partners. Shares of rue21, inc. closed on May 23, 2013 at $41.96 per share. Those who are current investors in rue21, inc. , have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554. End
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