Kirby McInerney LLP is investigating potential claims against the Board of Directors of Hot Topic, Inc. (“Hot Topic” or the “Company”) (NASDAQ: HOTT) related to the proposed acquisition of the Company by Sycamore Partners, a private equity firm. Under the terms of the agreement, Sycamore Partners will acquire Hot Topic for a cash purchase price of $14.00 per share, valuing the Company at approximately $600 million.
The investigation concerns whether the Hot Topic Board of Directors violated its fiduciary duties by agreeing to this transaction and whether the proposed $14.00 per share consideration adequately values Hot Topic shares. The offer price represents a 30% premium to the closing price of Hot Topic shares the day prior to the announcement. At least one analyst has a price target for the Company’s stock of $16.40 per share, 17% above the offer price.
If you are a Hot Topic shareholder and wish to obtain additional information, please contact J. Brandon Walker, Esq. by email at firstname.lastname@example.org, by telephone at (212) 699-1145 or (888) 529-4787, or by filling out this contact form.
Kirby McInerney LLP is a New York-based law firm concentrating in securities, shareholder, whistleblower, antitrust and consumer litigation. For additional information, please go to www.kmllp.com.