Robbins Umeda LLP Announces an Investigation of Zhongpin, Inc.
Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the board of directors of Zhongpin, Inc. (NASDAQ: HOGS) relating to the going private proposal by Xianfu Zhu, Zhongpin’s Chairman and Chief Executive Officer. 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 27, 2012, Zhongpin announced that the board received a going private proposal from the company’s Chairman and Chief Executive Officer, Xianfu Zhu. According to the terms of the proposal, Mr. Zhu intends to acquire all of the outstanding shares of the company’s common stock in a going private transaction. Under the terms of the proposal, Zhongpin shareholders would receive $13.50 for each share of the company they own.
Robbins Umeda LLP is investigating whether the board is acting in the best interest of Zhongpin shareholders as it considers the proposed transaction. In particular, the firm is examining whether the 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 March 13, 2012, Zhongpin released financial results for fiscal year 2011 that showcased sustainably improved conditions at the company. Zhongpin reported that revenues increased 54% to $1.45 billion in 2011, compared to only $946.7 million in 2010. Additionally, the company reported that net income increased 10% to $64.2 million in 2011, from only $58.3 million in 2010. Furthermore, Zhongpin announced revenue forecasts “within a range of $1.55 billion to $1.72 billion for 2012,” which would represent an increase of up to 18% over 2011 revenue figures.
Robbins Umeda attorneys highlight that Zhongpin 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.