Jingwei International Limited Merger Litigation (Nasdaq: JNGW)
Law Office of Brodsky & Smith, LLC Announces Investigation of Jingwei International Limited
BALA CYNWYD, Feb 2, 2012/PR Newswire/ –Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of Jingwei International Limited (“Jingwei” or the “Company”) (Nasdaq –JNGW- News) relating to their recommendation of the going private proposal from the Company’s Chairman and CEO.
Under the terms of the transaction, Jingwei will reduce its record shareholders to below 300. To accomplish this, Jingwei proposes a 1-20,000 reverse stock split. To avoid issuing fractional shares shareholders owning less than 20,000 will receive one whole share. Jingwei will then pay $2.20 in cash for each share of Jingwei stock owned prior to the reverse stock split. The investigation concerns possible breaches of fiduciary duty and other violations of state law by the Board of Directors of Jingwei for not acting in the Company’s shareholders' best interests. The transaction may undervalue Jingwei as Jingwei stock traded at $6.93 per share on June 2, 2010 and traded at $2.49 as recently as July 26, 2011. In addition, Jingwei shareholders owning 20,000 or more common shares at the time of the reverse stock split will retain their current number of common shares.
If you own shares of Jingwei stock and wish to discuss the legal ramifications of the proposed transaction, or have any questions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact Jason L. Brodsky, Esquire or Evan J. Smith, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by e-mail at firstname.lastname@example.org, or by calling toll free 877-LEGAL-90.
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