SAN DIEGO and JACKSONVILLE, Fla., Aug. 13, 2014 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of Fortegra Financial Corporation (NYSE: FRF) by Tiptree Financial Inc. (NASDAQ: TIPT). On August 12, 2014, the companies announced the signing of a definitive merger agreement pursuant to which Tiptree Financial will acquire all outstanding shares of Fortegra common stock. Under the terms of the agreement, Fortegra shareholders will receive $10.00 per share in cash for each Fortegra common stock they hold.
Is the Proposed Acquisition Best for Fortegra and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at Fortegra is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, on August 11, 2014, Fortegra released its earnings for the second quarter of 2014, reporting strong financial results. Specifically, the company reported an increase in total revenue by $3.6 million, or 4.2%, as well as an increase in net revenues by 5.2% to $27.3 million from continuing operations, compared to the same period in 2013. In announcing these results, Richard S. Kahlbaugh, Fortegra's Chairman, President, and Chief Executive Officer, remarked, "The quarter reflects our continued success and we believe that we are well positioned for future growth. Moreover, we remain on target to meet our previously provided guidance."
In light of these facts, Robbins Arroyo LLP is examining Fortegra's board of directors' decision to sell the company now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
Fortegra shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information. Fortegra shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, firstname.lastname@example.org, 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 law 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.
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SOURCE Robbins Arroyo LLP