STEVENSON, Md. (Jan. 31, 2012) — In the wake of the just-announced acquisition of Pep Boys — Manny, Moe & Jack by an investment company, law firm Brower Piven P.C. said it has begun an investigation into possible breaches of fiduciary duty to current shareholders of the automotive aftermarket chain and other violations of state law by the Pep Boys board of directors.
Los Angeles-based Gores Group L.L.C. announced Jan. 30 that it will purchase Pep Boys for an enterprise value of approximately $1 billion. Under the terms of the merger agreement, the group will acquire all the outstanding common shares of Pep Boys for $15 per share in cash—representing a premium of 24 percent over Pep Boys' closing price of $12.08 on Jan. 27, the company said, and a premium of 36 percent over the retail chain's volume weighted average closing price over the last 30 trading days.
Brower Piven said that its investigation “seeks to determine, among other things, whether the board breached its fiduciary duties by failing to maximize shareholder value.”
For any Pep Boys shareholders seeking more information about the investigation, the law firm said they can email or call Stevenson-based Brower Piven, without obligation or cost, and the firm would attempt to answer questions. Brower Piven said its attorneys have more than 60 years' combined experience litigating securities and other class-action cases.
According to a recent listing of actions by Brower Piven, the firm has undertaken several investigations for “possible breaches of fiduciary duty” relating to acquisitions in various industries.