NEW YORK, Aug. 25, 2015 /PRNewswire/ -- The fairness of the proposed acquisition of Belk, Inc. ("BELK" or the "Company") by Sycamore Partners ("Sycamore") is the subject of an investigation by WeissLaw LLP, a national class action, shareholder rights law firm. The investigation focuses on possible breaches of fiduciary duty and other violations of law by the Board of Directors of BELK for agreeing to sell the Company to Sycamore. On August 24, 2015, the Company announced it had reached a definitive agreement for Sycamore to acquire BELK in a transaction valued at approximately $3.0 billion. Under the terms of the agreement, BELK shareholders will receive $68.00 for each BELK share they own.
WeissLaw is investigating whether BELK's Board acted to maximize shareholder value. The Company recently announced positive financial results. On May 27, 2015, BELK reported net sales of $985.0 million in the first quarter of fiscal year 2016, as compared with $955.1 million in the previous year; representing an increase of 3.3% year-over-year. BELK also announced a 13% increase in net income, reporting net income totals of $21.8 million as compared with $19.3 million in the prior year. Lastly, the Company announced record growth in online sales for the first quarter of fiscal 2016, reporting a 36.7% increase.
Given these facts, WeissLaw is investigating whether BELK's Board acted in the best interests of BELK's public shareholders by actively shopping the Company to maximize shareholder value. If you own BELK 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