An investor in NASDAQ:RLOC shares filed a lawsuit against the proposed takeover of ReachLocal Inc. by Gannett Co., Inc.
Investors who purchased shares of ReachLocal Inc. (NASDAQ:RLOC) and currently hold any of those NASDAQ:RLOC shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:RLOC stockholders by agreeing to sell ReachLocal Inc. too cheaply via an unfair process to Gannett Co., Inc.
On June 27, 2016, Gannett Co., Inc. and ReachLocal Inc. (NASDAQ:RLOC) announced the execution of a merger agreement whereby Gannett would acquire the outstanding shares of ReachLocal, Inc., for $4.60 per share in cash, via a tender offer.
However, plaintiff claims that the proposed consideration NASDAQ:RLOC shareholders will receive is grossly inadequate and undervalues ReachLocal Inc. Indeed, NASDAQ:RLOC shares reached as high as $16.83 per share during 2013. . In addition, the plaintiff alleges that the process is also unfair to ReachLocal stockholder.
On August 3, 2016, NASDAQ:RLOC shares closed at $4.60 per share.
Those who are current investors in NASDAQ:RLOC shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com