New Frontier Media, Inc. Merger Litigation (Nasdaq: NOOF)
Law Office of Brodsky & Smith, LLC Announces Investigation of New Frontier Media, Inc.
BALA CYNWYD, October 18, 2012/PR Newswire/ –Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of New Frontier Media, Inc. (“New Frontier” or the “Company”) (Nasdaq- NOOF-News) relating to the proposed acquisition by LFP Broadcasting, LLC. (“LFP”).
Under the terms of the transaction, New Frontier shareholders will receive only $2.02 in cash, plus a contingent cash payment of no more than $0.06 per share of New Frontier common stock if New Frontier’s available cash balance at closing of the proposed acquisition exceeds $11.514 million, for each share on New Frontier common stock they own. The investigation concerns possible breaches of fiduciary duty and other violations of state law by the Board of Directors of New Frontier for not acting in the Company’s shareholders' best interests in connection with the sale process to LFP. The transaction may undervalue the Company as New Frontier stock traded at $2.13 on February 9, 2011 and an analyst has set a $4.00 per share price target on New Frontier.
If you own shares of New Frontier 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 email@example.com by calling toll free 877-LEGAL-90.
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