NEW YORK, Aug. 21, 2018 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Zoe's Kitchen, Inc. ("ZOES" or the "Company") (NYSE: ZOES) in connection with the proposed acquisition of the Company by CAVA Group, Inc. ("CAVA"). Under the terms of the acquisition agreement, shareholders will receive $12.75 in cash for each ZOES share they own.
WeissLaw is investigating whether ZOES's Board acted to maximize shareholder value prior to entering into the agreement. Notably, several analysts have expressed unfavorable views about the transaction. The deal, which would take the Company private, is seen as "a lowball offer," especially when considering that ZOES shares are still trading at all-time lows. According to one analyst, the bid— which places a market value of approximately $250 million on ZOES's shares and an enterprise value of $300 million on the Company as a whole— is uninspiring when also factoring in the Company's $350 million target revenue for the year.
Moreover, the $12.75 per-share bid comes just four short years after the Company's IPO, during which time ZOES shares were priced at $15.00 per share, or $2.25 above CAVA's per-share offer.
Finally, another analyst points to the deal's "hefty $17 million termination fee" as an indicator of CAVA's eagerness to "close the deal before the market wakes up."
Given these facts, WeissLaw is investigating whether ZOES's Board acted in the best interests of ZOES's public shareholders to maximize shareholder value prior to entering into the agreement. If you own ZOES 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/zoes-kitchen-inc/
SOURCE WeissLaw LLP