Faruqi & Faruqi Announces Filing Of Class Action Lawsuit Against Nicholas Financial, Inc.
NEW YORK, Feb. 10, 2014 /PRNewswire/ -- Notice is hereby given that a class action lawsuit has been filed in the United States District Court for the Middle District of Florida, on behalf of all shareholders of Nicholas Financial, Inc. ("Nicholas Financial" or the "Company") (NASDAQ: NICK) who held common stock on or before December 18, 2013, the day the Company agreed to be acquired, in connection with the proposed acquisition of the Company by Prospect Capital, Inc.
If you wish to obtain information concerning this action, you can do so by clicking here: http://www.faruqilaw.com/nick
On December 18, 2013, Nicholas Financial announced that it had entered into an arrangement agreement (the "Arrangement Agreement") under which Prospect Capital will acquire all outstanding shares of stock of Nicholas Financial (the "Proposed Transaction"). Pursuant to the Proposed Transaction, for each share of Nicholas Financial common stock they currently own Nicholas Financial's stockholders will receive the number of common shares of Prospect Capital determined by dividing (i) $16.00 by the (ii) volume-weighted average price ("VWAP") of Prospect Capital common stock for the twenty (20) trading days prior to and ending on the trading day immediately preceding the effective time. The total value of the Proposed Transaction is approximately $326 million.
The complaint charges Nicholas Financial, its board of directors (the "Board"), and Prospect Capital with violations of the Securities Exchange Act of 1934 (the "Exchange Act") and breaches of fiduciary duties for failing to conduct an adequate and fair sales process prior to agreeing to the Proposed Transaction.
Faruqi & Faruqi, LLP is a national law firm which represents investors and individuals in class action litigation. The firm is focused on providing exemplary legal services in complex litigation in the areas of securities, shareholder, antitrust and consumer litigation, throughout all phases of litigation. The firm has an experienced trial team which has achieved significant victories on behalf of the firm's clients.
If you wish to serve as lead plaintiff, you must move the Court no later than April 11, 2014. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
Juan E. Monteverde, Esq.
FARUQI & FARUQI, LLP
369 Lexington Ave
New York, NY 10017
Telephone: (877) 247-4292 or (212) 983-9330
SOURCE Faruqi & Faruqi, LLP