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Buyout Of Hot Topic - Law Firm Seeks Higher Price For Shareholders

Stock quotes in this article: HOTT 

NEW YORK, March 7, 2013 /PRNewswire/ -- Tripp Levy PLLC, a leading national securities and shareholder rights law firm, announces that it is investigating the acquisition of Hot Topic Inc. (NASDAQ: HOTT) on behalf of shareholders in connection with the sale of the company to the private equity firm Sycamore Partners.

Under the terms of the transaction, Hot Topic shareholders will receive $14 for each share of Hot Topic common stock they own. The investigation concerns whether the Hot Topic senior management and board of directors breached their fiduciary duties to stockholders by not obtaining the highest price possible for shareholders while obtaining personal benefits for themselves in selling the company at this price. Indeed, analysts have projected the company's true takeover value is worth at least $1.40 per share.  Moreover, the company has no debt and has at least $1.40 per share of cash on its books, meaning the purchase price is closer to $12.60 per share rather than $14 (since that cash will go to Sycamore Partners.)  In connection with selling the company at this price, the company's CEO and Chairman of the board and significant shareholder of approx. 9% of the outstanding shares, are voting in favor of the deal.

If you own HOTT common stock and you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact

Tripp Levy Tripp Levy PLLC 125 East 82 nd Street 9 th Floor New York, New York Toll Free: 877-772-3975 Email: contact@tripplevy.com

Tripp Levy PLLC is a national law firm that specializes in mergers & acquisitions, takeover litigation, shareholder rights, and corporate governance matters in state and federal courts throughout the United States. Attorney advertising. Prior results do not guarantee a similar outcome.

Contacts

Tripp Levy PLLC Tripp Levy, 877-772-3975 contact@tripplevy.com

SOURCE Tripp Levy PLLC

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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