Robbins Umeda LLP Announces an Investigation of eResearchTechnology, 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 eResearchTechnology, Inc. (NASDAQ: ERT) in connection with their efforts to sell the company to Genstar Capital LLC. 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 April 10, 2012, ERT announced that it had entered into a definitive merger agreement to be acquired by Genstar Capital. According to the terms of the deal, Genstar Capital will acquire all outstanding shares of the company through an all-cash transaction. Pursuant to the agreement, ERT shareholders will receive $8.00 for each share of the company they own. The transaction is expected to close during the third quarter.
Robbins Umeda LLP’s investigation focuses on whether ERT’s board is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company’s recent financial results. Specifically, on February 27, 2012, ERT reported operating results for the fourth quarter of 2011 that beat analyst expectations. The company reported revenue of $52.29 million for the quarter, well above analyst estimates of only $47.20 million and in excess of the $44.9 million in revenue record during the same quarter of the previous year.
Notably, shares of ERT have recently traded and closed above the offer price currently proposed by Genstar Capital. On April 9, 2012, shares of ERT traded above the current offer price, while shares of the company’s common stock closed above the offer price as recently as April 3, 2012. Furthermore, the offer price represents a premium of only 2% over the April 9, 2012 close price, and at least one leading market analyst has released a target price for ERT that values the company’s stock at $11.00 per share, considerably higher than the value currently being offered by Genstar Capital as a part of the proposed transaction.
Robbins Umeda attorneys highlight that ERT 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.