The securities litigation firm of Brower Piven, A Professional Corporation, has commenced an investigation into possible breaches of fiduciary duty to current shareholders of Hastings Entertainment, Inc. (“Hastings” or the “Company”) (NasdaqCM: HAST) and other violations of state law by the board of directors of Hastings relating to the proposed buyout of the Company by Draw Another Circle, LLC and Hendrix Acquisition Corp., companies owned directly or indirectly by Joel Weinshanker. Mr. Weinshanker is the sole shareholder of National Entertainment Collectibles Association, Inc., which holds approximately 12% of Hastings’ outstanding shares. Furthermore, Mr. John H. Marmaduke, Hastings’ Chairman and CEO, has agreed to tender his shares resulting in a combined 44% of the Company’s outstanding shares committed to vote for the merger.
Under the terms of the transaction, Hastings shareholders will receive $3.00 for each share of Hastings stock they own. The firm’s investigation seeks to determine, among other things, whether the Company’s board of directors breached their fiduciary duties by failing to maximize shareholder value before agreeing to recommend this transaction, and whether Mr. Weinshanker is taking advantage of his position to purchase the Company at an unfair price. In particular, Hastings has a reported book value of $7.57 per share for the most recent quarter, and at least one analyst set a price target of $5.00 for Hastings shares.
If you currently own common stock of Hastings and would like to learn more about the investigation being conducted by Brower Piven, you may email or call Brower Piven, who will, without obligation or cost to you, attempt to answer your questions. You may contact Brower Piven by email at
, by calling (410) 415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and other class action cases of over 60 years.