Robbins Umeda LLP Is Investigating Rural/Metro Corporation Acquisition for Shareholders
Robbins Umeda LLP, a shareholder rights litigation firm, is interested in helping shareholders of Rural/Metro Corporation. 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 Rural/Metro (NASDAQ: RURL) in connection with their efforts to sell the company to Warburg Pincus.
On March 28, 2011, Rural/Metro announced it has entered into a definitive merger agreement under which Warburg Pincus will acquire all of the outstanding common shares of Rural/Metro. Under the current agreement, Rural/Metro shareholders will receive $17.25 in cash for each share of Rural/Metro common stock they hold. The transaction is expected to close by the end of June 2011.
The investigation is focused on whether Rural/Metro’s board is undertaking a fair process to obtain maximum value for its shareholders. Notably, on February 9, 2011, Rural/Metro reported revenues for the second quarter of fiscal year 2011 that beat analysts’ expectations. Additionally, three analysts that cover Rural/Metro have set target prices for Rural/Metro above the proposed consideration being offered for the company.
If you own stock in Rural/Metro 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.