Former United States Securities and Exchange Commission attorney Willie Briscoe and the securities litigation firm of Powers Taylor, LLP are investigating potential legal claims against the Board of Directors of Fortune Industries, Inc. (“Fortune” or “Fortune Industries”) (NYSE Amex: FFI) related to a management buyout transaction with CEP, Inc., a holding company owned by a management-led group including Fortune Industries CEO Tena Mayberry and CFO Randy Butler. Under the terms of the buyout, Carter M. Fortune, the current majority shareholder and chairman of Fortune Industries, will sell all of his Series C Preferred shares to CEP, which will then be converted to common stock and contributed to CEP. Fortune Industries shareholders who own 501 or more shares will receive an equivalent number of shares in the post-merger company, while shareholders with less than 500 shares will receive $0.61 per share, well below Fortune Industries’ 52-week trading high of $0.90 per share.
If you are an affected investor, and you want to learn more about the lawsuit or join the action, 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, (214) 706-9314, or via email at WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to you.
According to shareholder rights attorney Willie Briscoe, “The investigation relates to the fairness of the proposed transaction to Fortune Industries shareholders and whether the board of directors is adequately shopping the company in order to obtain the best possible price for the shareholders. In addition, the firms are actively investigating possible breaches of fiduciary duty and other violations of state law by the Board of Directors of Fortune Industries in connection with the potential approval of this transaction, and whether Fortune Industries' Board of Directors is acting in the shareholders’ best interests.”