Motorola Mobility Holdings, Inc.
Robbins Umeda LLP Announces an Investigation of Motorola Mobility Holdings, Inc.
Robbins Umeda LLP, a shareholder rights litigation 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 Motorola Mobility Holdings, Inc. (NYSE: MMI) in connection with their efforts to sell the company to Google Inc. (NASDAQ: GOOG).
On August 15, 2011, Motorola Mobility announced that it had entered into a definitive merger agreement under which Google will acquire all outstanding shares of the company in an all cash transaction. Under the terms of the agreement, Motorola Mobility shareholders will receive $40.00 for each share of the company they own. The transaction is expected to close as soon as the end of 2011 or early 2012.
Robbins Umeda LLP’s investigation focuses on whether Motorola Mobility’s board is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company’s recent positive financial results. On July 28, 2011, Motorola Mobility announced financial results for the second quarter of fiscal year 2011 that greatly exceeded analyst expectations. The company reported revenue of $3.34 billion, up 28% from the same period last year, and better than analyst estimates of only $3.11 billion. Additionally, Motorola Mobility reported non-GAAP earnings of $0.09 per share, compared to a $0.30 per share loss during the same period in the prior year, and above analyst estimates of $0.05 per share. Furthermore, at least one analyst has set a price target for Motorola Mobility that values the company’s stock at $42.00 per share, considerably higher than the value being offered by Google as a part of the merger agreement.
If you own stock in Motorola Mobility 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.