NEW YORK, July 25, 2016 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Golden Enterprises Inc. ("GLDC" or the "Company") in connection with the proposed acquisition of the Company by Utz Quality Foods, Inc. ("Utz"). On July 19, 2016, the Company announced that it had reached a definitive agreement for Utz to acquire all outstanding shares of GLDC. Under the terms of the agreement, GLDC shareholders will receive $12.00 in cash for each GLDC share they own.
WeissLaw is investigating whether GLDC's Board acted to maximize shareholder value prior to entering into the agreement. Notably, GLDC recently announced positive financial results for the quarter ended March 4, 2016. It reported "net sales increased 11.6% . . . [and] total revenues for the same quarter were up 3.7%." Additionally, the acquisition of GLDC will increase Utz's value-based share of the savory snack market from 1.4% to 1.7%, representing an increase of approximately 21.5%.
Given these facts, WeissLaw is investigating whether GLDC's Board acted in the best interests of GLDC's public shareholders to maximize shareholder value prior to entering into the agreement. If you own GLDC 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 [email protected].
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 protected] or fill out the form on our website, http://www.weisslawllp.com/contact/report_fraud/.
SOURCE WeissLaw LLP