NEW YORK, April 23, 2013 /PRNewswire/ -- Tripp Levy PLLC, a leading national securities and shareholder rights law firm, announces that it is investigating on behalf of shareholders the acquisition of MEMSIC Inc. (NASDAQ: MEMS). Dr. Yang Zhao who is the Chairman of the Board and CEO of MEMS and who owns 19.5% of MEMS common stock is acquiring the remaining shares of MEMS that he does not already own for only $4.225 per share.
The investigation concerns whether Dr. Zhao and the board of directors of MEMSIC breached their fiduciary duties to shareholders. Dr. Zhao has an inherent conflict of interest and he is seeking to acquire the company for himself at the lowest price possible but he and the other board members have a duty to obtain the highest price possible. The offer of $4.225 is barely above the company's book value and does not take into effect the $62 million or $2.50 per share of cash on the company's books.
As the Chairman and CEO of the company, Dr. Zhao has inside information regarding the true value of the company and his and other management's stake makes it difficult for shareholders to get a fair voting process.
If you are a shareholder of MEMSIC and would like additional information, please contact us toll free at 1-877-772-3975 or email at [email protected]
SOURCE Tripp Levy PLLC