Kendall Law Group, a national securities firm led by a former federal judge and a former U.S. Attorney, is investigating NBTY, Inc. (NYSE: NTY) for shareholders in connection with the proposed acquisition by the Carlyle Group. The firm’s investigation seeks to determine whether NBTY and its Board breached their fiduciary duties by entering into the agreement without properly shopping for a deal that would provide better value for shareholders. If you are a NBTY shareholder and would like additional information about your rights, contact the Kendall Law Group at 877-744-3728 or by email at firstname.lastname@example.org.
On July 15, 2010, NBTY and the Carlyle Group announced that they had entered into a definitive agreement under which NBTY would be acquired for $55 per share in cash in a deal valued at approximately $3.8 billion. Although the price offered is “approximately 57% over NBTY's average closing share price during the 30 trading days ended July 14, 2010,” NBTY stock had traded for as high as $50.51 per share in mid-April 2010. NBTY stock prices fell dramatically in late April after NBTY disclosed an unexpected rise in advertising costs and a slowdown of sales in its private label business. A class action suit was filed following the drop in value of NBTY stock, alleging that NBTY and its directors and officers misled shareholders by releasing positive statements about the company and its prospects despite the fact that there was a “significant disruption in its private label business and a related decrease in demand for its private label products” and that “the Company’s advertising costs were escalating far in excess of the Company’s internal forecasts.”
Kendall Law Group was founded by a former federal judge, includes a former United States Attorney, prosecutors and securities lawyers who are experienced in complex securities litigation. The firm has been counsel in numerous merger and acquisition cases nationwide, including some of the largest transactions in the United States.