Newman Ferrara LLP Investigating Breach of Fiduciary Duty at eResearch Technology in Connection with Genstar Capital, LLC Acquisition
NEW YORK, Apr 11, 2012 -- Newman Ferrara LLP ( www.nfllp.com ) announced today that it is investigating the sale of eResearch Technology, Inc. ("ERT") ERT +0.02% to Genstar Capital, LLC ("Genstar"). Under the proposed transaction, ERT shareholders will receive only $8.00 in cash for each share of ERT stock owned -- a mere 2% premium over the previous day's closing price.
ERT shareholders concerned about this acquisition and their rights are encouraged to contact Newman Ferrara partner Jeffrey M. Norton at (212) 619-5400 or [email protected] for any questions concerning this notice.
On April 10, 2012, ERT announced that it had entered into a definitive merger agreement to be acquired by Genstar whereby Genstar will acquire all outstanding shares of the company through an all-cash transaction valued at $8.00 per share. The transaction is expected to close during the third quarter. Newman Ferrara's investigation is focused on whether ERT shareholders are receiving a fair price for their shares, whether the proposed sale undervalues ERT stock, and whether ERT's board of directors breached their fiduciary duty by failing to obtain the maximum share price prior to agreeing to the deal. Analysts have placed ERT value as high as $11.00 per share, indicating that the lack of a meaningful premium to ERT shareholders.
Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation with an emphasis on securities, ERISA, consumer fraud, products liability, civil rights and real estate. For more information, please visit the firm website at www.nfllp.com .
SOURCE: Newman Ferrara LLP