SAN DIEGO, April 12, 2010 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit has been filed in Oklahoma State Court on behalf of current investors in Arena Resources, Inc. (NYSE:ARD), who purchased their ARD shares before April 05, 2010, over alleged breach of their fiduciary duties by certain members of the Arena Resources board of directors and others.
On April 01, 2010 SandRidge Energy, Inc. (NYSE:SD) and Arena Resources, Inc. (NYSE:ARD) announced that they have entered into a definitive merger agreement under which Arena Resources, Inc shareholders (ARD) will receive stock and cash consideration valued at $40 per share of Arena Resources, Inc common stock (ARD) based on SandRidge Energy's April 1, 2010 closing price or a transaction value of approximately $6.2 billion. According to Arena Resources, Inc the offer represents a 17% premium for Arena Resources, Inc shareholders.
Shares of Arena Resources, Inc. (NYSE:ARD) traded before the announcement at $34.40 per share, and were down from its 52 week high of $45.72 per share and over $51 in Mid 2008.
The plaintiff alleges, among other things, that certain members of the Arena Resources board of directors have clear and material conflicts of interest and failed to maximize shareholder value, and therefore breached their fiduciary duty to ARD shareholders by selling Arena Resources via an unfair process and at an unfair price. The takeover, which includes a no-solicitation clause and a termination fee of up to $50 million, is an "unlawful plan to squeeze out Arena Resources' public stockholders through the implementation of a flawed process and unconscionable consideration," so the lawsuit.
Those who currently are investors in shares of Arena Resources, Inc. (NYSE:ARD) and purchased their shares before April 05, 2010, should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
The Shareholders Foundation, Inc. is an investor advocacy group which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The group offers help, support, and assistance for every shareholder, and 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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