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BALA CYNWYD, Pa.,
July 24, 2012 /PRNewswire/ -- Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of GenOn Energy, Inc ("GenOn" or the "Company") (NYSE- GEN-News) relating to the proposed acquisition by NRG Energy, Inc. ("NRG").
Under the terms of the transaction, GenOn shareholders would receive only 0.1216 shares of NRG common stock for each share of GenOn stock they own. The transaction values each share of GenOn stock at approximately
$2.19 per share. The investigation concerns possible breaches of fiduciary duty and other violations of state law by the Board of Directors of GenOn for not acting in the Company's shareholders' best interests in connection with the sale process to NRG.
The transaction may undervalue GenOn as GenOn stock traded at
$4.09 per share on
July 25, 2011 and
$2.62 per share as recently as
March 16, 2012. In addition, an analyst has placed a
$4.50 price target on the stock. The investigation is also examining potential conflicts of interest as four members of GenOn's Board, including its Chairman and CEO will have continuing positions at the combined company.
If you own shares of GenOn stock and wish to discuss the legal ramifications of the proposed transaction, or have any questions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact
Jason L. Brodsky, Esquire or
Evan J. Smith, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602,
Bala Cynwyd, PA 19004, by e-mail at
http://brodsky-smith.com/458-gen-genon-energy-inc.html, or by calling toll free 877-LEGAL-90.
SOURCE Brodsky & Smith, LLC