NEW YORK, June 29, 2016 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of ReachLocal, Inc. ("RLOC" or the "Company") in connection with the proposed acquisition of the Company by Gannett Co., Inc. ("Gannett"). On June 27, 2016, the Company announced it had reached a definitive agreement for Gannett to acquire all outstanding shares of RLOC. Under the terms of the agreement, RLOC shareholders will receive $4.60 in cash for each RLOC share they own.
WeissLaw is investigating whether RLOC's Board acted to maximize shareholder value prior to entering into the agreement. Notably, the Company recently reported positive financial results. It announced on May 3, 2016, its "fourth consecutive quarter of positive Adjusted EBITDA," with $3.4 million in Adjusted EBITDA in the first quarter of 2016. Additionally, according to Gannett's president and chief executive officer, Robert Dickey, "[t]he acquisition of ReachLocal [will accelerate] Gannett's digital growth strategy, adding more than $320 million of annual digital revenue."
Given these facts, WeissLaw is investigating whether RLOC's Board acted in the best interests of RLOC's public shareholders to maximize shareholder value prior to entering into the agreement. If you own RLOC shares and would like more information about your rights or our investigation, or if you have information to share with us, please contact Joshua Rubin by telephone at (888) 593-4771 or by email at firstname.lastname@example.org.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at email@example.com or fill out the form on our website, http://www.weisslawllp.com/contact/report_fraud/.
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SOURCE WeissLaw LLP