Lorillard, Inc. Merger Litigation (NYSE: LO)
SHAREHOLDER ALERT: Brodsky & Smith, LLC Announces Investigation of
Lorillard, Inc. in Connection with the Sale of the Company -LO
BALA CYNWYD, July 18, 2014 /PR Newswire/ –Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of Lorillard, Inc. (“Lorillard” or the “Company”) (NYSE –LO, -News) relating to the proposed acquisition by Reynolds American, Inc. (“Reynolds”).
Under the terms of the transaction, Lorillard shareholders will receive only 0.2909 of a share of Reynolds stock and $50.50 in cash for each share of Lorillard stock they own. The investigation concerns possible breaches of fiduciary duty and other violations of state law by the Board of Directors of Lorillard for not acting in the Company’s shareholders' best interests in connection with the sale process.
Further, the investigation seeks to determine if conflicts of interest played a role in the transaction. After the transaction is complete Lorillard shareholders will own only approximately 15% of the new entity. However, British American Tobacco, which currently owns approximately 42% of Lorillard is being given the opportunity to invest additional monies to fund the transaction, which will allow them to keep its 42% ownership stack.
If you own shares of Lorillard common stock and wish to discuss the legal ramifications of the investigation, 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 calling toll free 877-LEGAL-90.
Brodsky & Smith, LLC is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and case action lawsuits. The attorneys at Brodsky & Smith have been appointed by numerous courts throughout the country to serve as lead counsel in class actions and successfully recovered millions of dollars for our clients and shareholders. Attorney advertising. Prior results do not guarantee a similar outcome.
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