The Briscoe Law Firm, PLLC, founded by a former state prosecutor and enforcement attorney for the United States Securities and Exchange Commission, and the securities litigation law firm of Powers Taylor LLP are investigating potential legal claims against the Board of Directors of Sonic Solutions (NASDAQ: SNIC) related to the proposed buyout of Sonic Solutions by Rovi Corporation (NASDAQ: ROVI).
The definitive acquisition agreement, which was announced on December 23, 2010, involves a transaction valued at approximately $720 million under which Sonic Solutions shareholders will be allowed to elect either a cash payment of $14 or 0.2489 shares of ROVI shares for each share of Sonic Solutions/SNIC common stock they hold. Under the deal terms, ROVI will pay 55% of the transaction price in cash and 45% in stock.
The investigation relates to the fairness of the proposed transaction to Sonic Solutions shareholders, possible breaches of fiduciary duty and other violations of state law by the Board of Directors of Sonic Solutions for approving this transaction, and whether Sonic Solutions’ Board of Directors acted in the shareholders’ best interests. Although the acquisition price represents an approximate 26% premium over Sonic Solutions’ closing price the day before the acquisition announcement, at least one analyst has set a target price of $17.00 per share for Sonic Solutions’ stock, and Sonic Solutions’ shares traded at nearly $14 per share as recently as April 26, 2010. “Based on the lack of an appreciable premium to shareholders, and other considerations, we feel that the price offered to Sonic Solutions’ shareholders is unfair,” said shareholder rights attorney Willie Briscoe.
If you currently own shares of Sonic Solutions/SNIC and would like additional information regarding this investigation, or if you have information regarding the allegations involved in this transaction, please contact Patrick Powers at Powers Taylor LLP, toll free (877) 728-9607, via e-mail at firstname.lastname@example.org, or Willie Briscoe at The Briscoe Law Firm, PLLC toll free (877) 397-5991, or via email at WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to you.The Briscoe Law Firm is a full service business litigation and shareholder rights advocacy firm with more than 20 years of experience in complex litigation matters.