SAN DIEGO, June 28, 2010 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit has been filed in California State Court on behalf of current investors in DivX, Inc. (Nasdaq:DIVX), who purchased their DIVX shares before June 02, 2010, over alleged breach of their fiduciary duties by members of the DivX board of directors and others for selling DivX Inc. too cheap to Sonic.
Those who currently are investors in shares of DivX, Inc. (Nasdaq:DIVX) and purchased their shares before June 02, 2010, should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
On Wednesday, June 02, 2010, DivX, Inc. (Nasdaq:DIVX) and Sonic Solutions (Nasdaq:SNIC) announced that they have signed a merger agreement for Sonic Solutions to acquire DivX, Inc., under which Sonic Solutions would acquire all the outstanding shares of DivX. DivX stockholders would receive a combination of cash and stock equal to $3.75 in cash and 0.514 shares of Sonic common stock for each share of DivX they hold.
But according to the complaint the plaintiff alleges, among other things, breaches of fiduciary duty by the Board of Directors of DivX arising out of their attempt to sell DivX, Inc. (Nasdaq:DIVX) to Sonic Solutions at an unfair price.
Based on Sonic Solutions closing price on June 01, 2010, of $11.83 per share 0.514 shares represent $6.08062. Thus based on a June 01, 2010 SNIC stock price DivX investors would receive an equivalent of $9.83 per DIVX share they own. But Sonic Solutions shares have declined since the announcement to almost $8 per share and based on a share price of $8 DivX investors would receive an equivalent of $7.862 per DivX share they own.
DIVX shares traded at $7.50 per share already the trading day before takeover news, then climbed as high as $9.00 per share shortly after the takeover announcement, and then declined recently to under $7.50 per share. DIVX shares are down from its 52weekHigh of $8.90 per share, $14.20 per share in 2008, and almost $24 per share in 2007.
Those who currently are investors in shares of DivX, Inc. (Nasdaq:DIVX) and purchased their shares before the announcement, should contact the Shareholders Foundation, Inc.
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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