Robbins Umeda LLP Announces an Investigation of Midas, 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 Midas, Inc. (NYSE: MDS) in connection with their efforts to sell the company to TBC Corporation. 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 March 13, 2012, Midas announced that it had entered into a definitive merger agreement to be acquired by TBC Corporation. According to the terms of the deal, TBC Corporation will acquire all outstanding shares of Midas through a cash tender offer, pursuant to which Midas shareholders will receive $11.50 for each share of the company they own. The tender offer is expected to commence no later than March 28, 2012. The transaction is expected to close by the end of the second quarter of fiscal year 2012.
Robbins Umeda LLP’s investigation focuses on whether Midas’s board is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company’s recent financial results. On March 1, 2012, Midas reported financial results for the fourth quarter of fiscal year 2011 that showcased improving conditions at the company. The company reported a net loss of $0.4 million—or $0.03 per diluted share—for the fourth quarter, compared to a net loss of $15.7 million—or $1.14 per diluted share—during the same quarter of the previous year. Additionally, on March 1, 2012, Midas reported that quarterly operating income was $1.4 million, compared to an operating loss of $20.4 million during the same quarter in the prior year.
Robbins Umeda attorneys highlight that Midas 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.