SAN DIEGO and WARRENDALE,
Pa., May 23, 2013 /PRNewswire/
-- Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the acquisition of rue21, inc. (NASDAQ: RUE) by funds
advised by the private equity firm Apax Partners. On
May 23, 2013, the companies announced
the signing of a definitive merger agreement under which Apax
Partners will acquire all outstanding shares of rue21 for
$42 per share in cash. Robbins
Arroyo LLP's investigation concerns, among other things, whether
the merger was motivated by any improper conflicts of interest
since Apax Partners is already rue21's largest shareholder and two
principals of Apax Partners sit on rue21's board of directors,
including John F. Megrue, Jr. and
Alex Pellegrini.
(Logo:
http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)
Is the Acquisition in the Best Interests of
rue21 and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at rue21 is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders in the
merger.
On March 21, 2013, rue21 released
its fourth quarter and fiscal year 2012 financial results
reflecting strong growth in net sales, adjusted net income, and
adjusted earnings per share. Specifically, rue21 reported an
increase in net sales of over 22% for the fourth quarter and over
18% for the full year, compared to the same periods in 2011.
Adjusted net income for the fourth quarter increased by over 22%
and by nearly 20% for the full year, compared to the same periods
in 2011. Adjusted earnings per share for the fourth quarter
were $0.65 compared to $0.52 for the fourth quarter 2011 and
$1.87 in fiscal 2012 compared to
$1.55 in fiscal 2011. Further
demonstrating the company's sustained economic performance and
stellar business prospects, rue21 exceeded analyst earnings per
share and net income expectations in the past nine quarters.
In announcing rue21's financial results, Robert N. Fisch, the company's President and
Chief Executive Officer, touted that "Fiscal 2012 was another year
of consistent top and bottom line growth for rue21, including gross
margin and double-digit growth in net income. We continue to
focus on the qualities that make rue21 appealing to our customers
and our financial returns attractive to our shareholders…."
Given these facts, Robbins Arroyo LLP is examining the board of
directors' decision to sell rue21 now rather than allow
shareholders to continue to participate in the company's continued
success and future growth prospects.
Shareholders of rue21 have the option to file a class action
lawsuit to secure the best possible price for themselves and the
disclosure of material information so that they can vote on the
transaction in an informed manner. Shareholders of rue21
interested in information about their rights and potential remedies
can contact Darnell R. Donahue at
(800) 350-6003, ddonahue@robbinsarroyo.com, or via the shareholder
information form on the firm's website.
Robbins Arroyo 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. For more information, please go to
http://www.robbinsarroyo.com.
Press release link:
http://www.robbinsarroyo.com/shareholders-rights-blog/rue21-inc/
Attorney Advertising.Past results do not guarantee a similar
outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
SOURCE Robbins Arroyo LLP