On or around 02/24/2011 (Court's order of dismissal)
Filing Date: November 08, 2010
According to the complaint filed on November 09, 2010, the Proposed Transaction provides Alberto-Culver shareholders with grossly inadequate consideration and is the result of a flawed sales process. After recently restructuring its business to focus on its consumer segment, the Company has reported two consecutive quarters of impressive sales and earnings per share, and Wall Street analysts have predicted rapid growth within the personal care products industry, the very focus of the Company’s business. Consequently, Alberto-Culver’s Board had substantial leverage to negotiate a significant premium in an all-cash sale of the Company. Nevertheless, the Board breached its fiduciary duties by electing to negotiate the sale of the Company, without ever contacting any other potential buyers.
According to a document filed on December 29, 2010, a Stipulation and Agreement of Compromise and Settlement was filed with The Court of Chancery of The State of Delaware that effectively stayed this proceeding until a final judgment is approved in the state court proceeding. On February 24, 2011, the case was dismissed with prejudice pursuant to settlement.
Company & Securities Information
Defendant: Alberto-Culver Company
Sector: Consumer Non-Cyclical
Industry: Personal & Household Products
Headquarters: United States
Ticker Symbol: ACV
Company Market: New York SE
Market Status: Public (Listed)
About the Company & Securities Data
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