Weiss & Lurie, a national class action and shareholder rights law firm with offices in New York City and Los Angeles, is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Dreams, Inc. (NYSE Amex: DRJ) arising from its agreement for Dreams to be acquired by Fanatics, Inc. for $3.45 per share. The transaction is expected to close during the third quarter of 2012.
Weiss & Lurie is investigating whether the Dreams Board acted in the best interests of shareholders in approving this deal. Notably, Dreams recently reported “another record year” with a 27% increase in revenue to $141.7 million in 2011, and management expects 2012 revenue to be approximately $175 million. Fanatics’ offer price represents a mere 13% premium over the Company’s recent 52-week high of $3.04 per share on March 26, 2012. Indeed, prior to the deal announcement, analysts following the Company had set the target price for Dreams stock above the offer price, with a high target of $5.00 per share.
Moreover, several insiders, collectively owning approximately 35% of the outstanding shares of Dreams, have entered into agreements by which they have committed to vote in favor of the proposed merger, thereby diluting the shareholder vote.
If you own Dreams shares and would like more information about your rights as a shareholder or additional information concerning our investigation, please contact Julia J. Sun either by email at email@example.com or by telephone at (888) 593-4771.Weiss & Lurie has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded institutions and individuals and obtained important corporate governance in these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or issuing materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at firstname.lastname@example.org or fill out the form on our website, http://www.weisslurie.com/contact/report_fraud/. Attorney Advertising. Past results do not guarantee a similar outcome.