Robbins Umeda LLP Announces an Investigation of Kenexa Corporation
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 Kenexa Corporation. (NYSE: KNXA) in connection with their efforts to sell the company to IBM (NYSE: IBM). 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 August 27, 2012, Kenexa and IBM announced that they had entered into a definitive merger agreement pursuant to which Kenexa will be acquired by IBM. According to the terms of the deal, IBM will acquire Kenexa through an all cash transaction. Pursuant to the agreement, Kenexa shareholders will receive $46 in cash for each share of the company they own. The transaction is expected to close in the fourth quarter of 2012.
Robbins Umeda LLP’s investigation focuses on whether the board of directors at Kenexa is undertaking a fair process to obtain maximum value and adequately compensate its shareholders. For example, on August 7, 2012, Rudy Karsan, Kenexa’s CEO, stated “[w]e continued our strong operational performance in the second quarter with both revenue and non-GAAP profitability exceeding our guidance.” Mr. Karsan added, “We are increasing our revenue guidance for the full year 2012 based on the strength of our second quarter results and our ongoing business momentum. In addition, the growing number of blue chip customer wins for our Kenexa 2x SaaS platform and efficiency gains with our RPO customers are driving leverage in our business and contributing to our increased non-GAAP profitability guidance for 2012.” Given these positive statements and the company’s strong outlook, Robbins Umeda LLP is examining the board’s decision to sell Kenexa now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Robbins Umeda LLP attorneys highlight that Kenexa 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.