Hastings Entertainment, Inc. Announces Dismissal of Litigation in connection with Agreement and Plan of Merger with Affiliate of Joel Weinshanker
AMARILLO, Texas, Aug. 5, 2014 /PRNewswire/ -- Hastings Entertainment, Inc., a leading multimedia entertainment retailer ("Hastings"), today reported that the United States District Court for the Northern District of Texas, Amarillo Division, has entered an Agreed Stipulation and Agreed Order (the "Dismissal") dismissing, with prejudice, the lawsuit captioned CV-00072-J—Andreas Oberegger and David A. Capps, directly and derivatively on behalf of Hastings Entertainment, Inc., v. Danny W. Gurr, Ann S. Lieff, Frank O. Marrs, John H. Marmaduke, Jeffrey G. Shrader, Draw Another Circle, LLC, Hendrix Acquisition Corp., Joel Weinshanker and National Entertainment Collectibles Association, Inc., as defendants, and Hastings Entertainment, Inc., as a nominal defendant. This lawsuit challenged the merger transaction involving Hastings and an affiliate of Mr. Joel Weinshanker pursuant to the Agreement and Plan of Merger (the "Merger Agreement") entered into by Hastings, Draw Another Circle, LLC ("Parent") and Hendrix Acquisition Corp., each of which are wholly-owned, directly or indirectly, by Mr. Weinshanker. The plaintiffs in this lawsuit were purported shareholders of Hastings and alleged, among other things, that the merger contemplated in the Merger Agreement provided for insufficient consideration to be paid to Hastings' shareholders in exchange for their shares of Hastings' common stock, that the officers and directors of Hastings breached their respective fiduciary duties in the course of negotiating and approving the Merger Agreement and that the other defendants aided and abetted such breach of fiduciary duties. In accepting Plaintiff's desire to drop their lawsuit Hastings, along with the other defendants, agreed not to bring a claim against the plaintiffs for recovery of costs incurred. Neither Hastings nor any of the other defendants is subject to any obligations under the terms of the Dismissal, including any obligation to make any payments to the plaintiffs in this lawsuit or their legal counsel.
As Hastings previously reported, the merger contemplated by the Merger Agreement was consummated on July 15, 2014, and Hastings is currently a wholly-owned subsidiary of Parent and is no longer a public company.
Founded in 1968, Hastings' is a leading multimedia entertainment retailer that combines the sale of new and used books, videos, video games and CDs, and trends and consumer electronics merchandise, with the rental of videos and video games in a superstore format. We currently operate 125 superstores, averaging approximately 24,000 square feet, primarily in medium-sized markets throughout the United States. We also operate three concept stores, Sun Adventure Sports, located in Amarillo, Texas and Lubbock, Texas, and TRADESMART, located in Littleton, Colorado.
We also operate www.goHastings.com, an e-commerce Internet web site that makes available to our customers new and used entertainment products and unique, contemporary gifts and toys. The site features exceptional product and pricing offers.
SOURCE Hastings Entertainment, Inc.