Levi & Korsinsky is investigating the Board of Directors of Capital Gold Corporation (“Capital Gold” or the “Company”) (AMEX: CGC) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Gammon Gold, Inc. (“Gammon Gold”) (NYSE: GRS). Under the terms of the transaction, each common share of Capital Gold will be exchanged for 0.5209 common shares of Gammon Gold and a cash payment in the amount of $0.79 per share. The total consideration for the purchase of 100% of the fully diluted in-the-money shares of Capital Gold is approximately $288 million or $4.57 per Capital Gold share based on Gammon Gold’s closing price on September 24, 2010. Click here to learn how to join the action: http://www.zlk.com/capitalgold-cgc.html, or call: 877-363-5972.
The investigation concerns whether the Capital Gold Board of Directors breached their fiduciary duties to Capital Gold stockholders by failing to adequately shop the Company before entering into this transaction and whether Gammon Gold is underpaying for Capital Gold shares, thus unlawfully harming Capital Gold stockholders. In particular, at least one analyst set a price target for Capital Gold stock at $8.74 per share.
If you own common stock in Capital Gold and wish to obtain additional information, please contact Joseph E. Levi, Esq. either via email at firstname.lastname@example.org or by telephone at (212) 363-7500, toll-free: (877) 363-5972, or visit http://www.zlk.com/capitalgold-cgc.html.
Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation. The attorneys at Levi & Korsinsky have been appointed by numerous courts throughout the country to serve as lead counsel on behalf of shareholders in major litigations involving mergers and acquisitions. For more information, please feel free to contact any of the attorneys listed below.