Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating whether members of the board of directors of Zale Corporation (NASDAQ: ZLC) breached their fiduciary duties in connection with the planned sale of the Company to Signet Jewelers Limited (NYSE: SIG). Zale operates as a specialty retailer of fine jewelry in North America.
On February 19, 2014, Zale announced that they have entered into a definitive agreement for Signet to acquire all of the issued and outstanding stock of Zale for $21.00 per share in cash consideration. This represents a transaction value of approximately $1.4 billion.
The investigation concerns whether Zales’s board members failed to satisfy their duties to the Company’s shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for the Company’s shares of common stock.
Jim Baker, lead analyst for Johnson & Weaver, stated that, “Signets’ offer appears to be inadequate and not in the best interest of Zales’s shareholders.” In particular, Baker cited, “Zale shareholders weathered a long turnaround and now when the Company is back on track the Company is being sold from underneath them.”If you are Zale shareholder and would like additional information concerning your legal rights, please contact lead analyst Jim Baker ( firstname.lastname@example.org) at 619-230-0063. Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California and New York. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.