The Law Office of Abe Shainberg is investigating the Board of Directors of Rewards Network Inc. (“Rewards Network” or the “Company”) (NasdaqCM: DINE) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to EQI Acquisition, L.L.C. (“EQI Acquisition”), an affiliate of Equity Group Investments, L.L.C. (“EQI”). Under the terms of the transaction, Rewards Network shareholders will receive $13.75 in cash for each share of Rewards Network common stock they own for a total transaction value of approximately $126 million. EGI Acquisition currently owns approximately 14.2% of the outstanding shares and certain other affiliates of EGI collectively own approximately 12.1% of the outstanding shares and have agreed to tender such shares in the offer.
The investigation concerns whether the Rewards Network Board of Directors breached their fiduciary duties to Rewards Network stockholders by failing to adequately shop the Company before entering into this transaction and whether EQI Acquisition is underpaying for Rewards Network shares, thus unlawfully harming Rewards Network stockholders. Rewards Network stock has traded as high as $14.46 per share as recently as October 26, 2010.
If you own common stock in Rewards Network and wish to obtain additional information, please contact Abe Shainberg, Esq. either via email at email@example.com or by telephone at (212) 425-7286, or visit http://www.ashainberglaw.com/rewards-network-dine.html.
Mr. Shainberg has expertise in prosecuting investor securities litigation, is a certified and registered arbitrator and mediator involving financial matters, and represents investors in various matters nationwide.