Charming Shoppes, Inc.
Robbins Umeda LLP Announces an Investigation of Charming Shoppes, Inc.
Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by members of the board of directors of Charming Shoppes, Inc. (NASDAQ: CHRS) in connection with their efforts to sell the company to Ascena Retail Group, Inc. (NASDAQ: ASNA). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
On May 2, 2012, Charming Shoppes announced that it had entered into a definitive merger agreement to be acquired by Ascena through an all-cash transaction. Pursuant to the agreement, Charming Shoppes shareholders will receive $7.35 for each share of the company they own. The transaction is expected to close during the second calendar quarter of 2012.
Robbins Umeda LLP’s investigation focuses on whether the board of Charming Shoppes is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company’s recent financial results. On March 27, 2012, Charming Shoppes reported financial results that beat analyst estimates and represented the company’s fifth consecutive quarter of improved year over year results. Specifically, the company reported revenues for the fourth quarter of 2011 of $559.1 million, which beat analyst estimates of $544.5M, and Adjusted EBITDA of $12.7 million, an 18.7% increase over the fourth quarter of 2010.
Additionally, at least two leading market analysts released target prices for Charming Shoppes above the price offered by Ascena, including one that values the company’s stock at $9.00 per share. Given these target prices and the company’s impressive financial results, Robbins Umeda LLP is examining the board’s decision to sell Charming Shoppes rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Robbins Umeda LLP attorneys highlight that Charming Shoppes shareholders have the option to file a class action lawsuit against the company to secure the best possible price for the company’s shareholders and the disclosure of material information to shareholders so they can vote on the transaction in an informed manner.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.