Robbins Umeda LLP Is Investigating LoopNet, Inc. Acquisition for Shareholders
Robbins Umeda LLP, a shareholder rights litigation firm, is interested in helping shareholders of LoopNet, Inc. (NASDAQ: LOOP). The firm has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the board of directors of LoopNet in connection with their efforts to sell Loopnet to CoStar Group, Inc. (NASDAQ: CSGP).
On April 28, 2011, CoStar announced it has entered into a definitive agreement to acquire LoopNet. Pursuant to the merger agreement, LoopNet shareholders will receive $16.50 in cash and 0.03702 shares of CoStar common stock for each share of LoopNet common stock. The boards of directors of both companies have unanimously approved the transaction. The transaction is expected to close by the end of 2011.
The investigation focuses on whether LoopNet’s board is undertaking a fair process to obtain maximum value for its shareholders. Of particular interest, Loopnet’s directors, certain executive officers, and significant shareholders representing 32% of Loopnet’s outstanding shares, have signed a voting agreement in support of the deal. Further, the agreement contains a termination fee of $25.8 million and a “no solicitation clause.” These sections of the agreement can serve to deter competitors from making higher offers for LoopNet.
If you own stock in LoopNet and would like more information about your shareholder rights, please complete the form below and we will contact you directly. We also welcome you to call us at 800-350-6003.