NEW YORK, Aug. 1, 2016 /PRNewswire/ -- Notice is hereby given that Faruqi & Faruqi, LLP has filed a class action lawsuit in the United States District Court for the District of Utah, case no. 2:16-cv-00810, on behalf of shareholders of Skullcandy, Inc. ("Skullcandy" or the "Company") (NasdaqGS: SKUL) who held Skullcandy securities and have been harmed by Skullcandy's and its board of directors' (the "Board") alleged violations of Sections 14(d)(4), 14(e), and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and of the United States Securities and Exchange Commission ("SEC") Rule 14d-9 in connection with the sale of the Company to Incipio, LLC ("Incipio").
On June 23, 2016, the Company entered into an Agreement and Plan of Merger ("Merger Agreement") under which Incipio will acquire all of the outstanding shares of Skullcandy through an all-cash tender offer followed by a second-step merger (the "Proposed Transaction").
If you wish to obtain information concerning this action or view a copy of the complaint, you can do so by clicking here: www.faruqilaw.com/SKULnotice.
Pursuant to the terms of the Merger Agreement, which was unanimously approved by the Board, Skullcandy shareholders will receive $5.75 in cash per share for each share of Skullcandy they own. The complaint claims that this offer is inadequate in light of the Company's recent financial performance and strong growth prospects and that it represents a 29.2% discount to the Company's 52-week high close price.
The complaint alleges that the Recommendation Statement on Schedule 14D-9 (the "14D-9") filed with the SEC on July 6, 2016 provides materially incomplete and misleading information about the Company and the Proposed Transaction regarding: (i) the process leading to the Proposed Transaction, including certain conflicts of interest and bids from other interested parties (ii) the financial analyses conducted by Peter J. Solomon Securities Company, LLC ("PJSC"), financial advisor to Skullcandy, and (iii) the projections used by PJSC in those analyses. The 14D-9 fails to provide Skullcandy's shareholders with material information concerning the financial and procedural fairness of the Proposed Transaction.
Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud. Faruqi & Faruqi, LLP, was founded in 1995 and the firm maintains its principal office in New York City, with offices in Delaware, California, and Pennsylvania. Faruqi & Faruqi, LLP is working together in this investigation with Juan E. Monteverde from Monteverde & Associates PC.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. 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:
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SOURCE Faruqi & Faruqi, LLP