Newman Ferrara LLP Announces Developments In Its Investigation Of U.S. Home Systems Inc.
There have been new developments in Newman Ferrara LLP’s ongoing investigation into potential claims against the board of directors of U.S. Home Systems Inc. (“USHS”) (NasdaqGM: USHS) concerning the proposed merger agreement between USHS and The Home Depot, Inc. (“Home Depot”) (NYSE: HD).
On August 7, 2012, USHS announced that it had entered into a definitive merger agreement to be acquired by Home Depot. This announcement came just one day before USHS publicly announced that it had generated the “highest quarterly revenues in Company history” in the second quarter of 2012. For the second quarter of 2012, USHS also reported an 11% increase in new orders and reported diluted earnings per share exceeding guidance and up 19% compared to the second quarter of 2011.
Under the merger agreement, USHS shareholders will receive $12.50 in cash per share of USHS common stock owned . However, prior to USHS’ announcement of the proposed merger, USHS common stock had traded at the $12.50 per share offer price as recently as March 16, 2012 and traded at $14.81 per share on March 2, 2012.
The Board of Directors of USHS has unanimously approved the proposed merger. Subject to approval by USHS’ shareholders, the proposed merger is expected to close by the end of the calendar year.Newman Ferrara LLP’s investigation concerns whether USHS’ Board of Directors has breached its fiduciary duties to act in the best interests of USHS’ shareholders and to take all necessary steps to ensure that USHS’ shareholders receive the maximum value readily available for their shares of USHS common stock. Concerned investors are encouraged to contact Newman Ferrara attorney Roy Shimon at (212) 619-5400 or firstname.lastname@example.org to discuss this investigation, their rights, or potential remedies. Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at www.nfllp.com.
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