SAN DIEGO and PLEASANTON, Calif., May 15, 2014 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP announce that the firm filed a class action lawsuit on May 15, 2014, in the U.S. District Court, Northern District of California, Oakland Division (the "Court"), on behalf of the shareholders of Safeway Inc. ("Safeway") (NYSE: SWY) against Safeway, its Board of Directors, Albertson's LLC ("Albertson's"), Saturn Acquisition Merger Sub, Inc. and Cerberus Capital Management L.P., for, among other things, violations of sections 14(a) and 20(a) of the U.S. Securities and Exchange Act of 1934 (the "Exchange Act") and U.S. Securities and Exchange Commission Rule 14a-9 promulgated thereunder.
The complaint arises out of a March 6, 2014 press release announcing that Safeway had entered into a definitive merger agreement with Albertson's, pursuant to which Safeway shareholders would receive, for each Safeway share they own, $32.50 in cash and the right to receive pro-rata distributions of net proceeds from primarily non-core assets, estimated to be worth $3.65 per share (the "Proposed Transaction"). The complaint seeks injunctive relief on behalf of the named plaintiff and all other similarly situated shareholders of Safeway as of March 6, 2014 (the "Class"). The named plaintiff is represented by Robbins Arroyo LLP.
The named plaintiff alleges that certain of the defendants, in connection with the Proposed Transaction, breached or aided and abetted the other defendants' breaches of their duties and obligations owed to Safeway shareholders. The complaint further alleges that, in an attempt to secure shareholder approval of the Proposed Transaction, the defendants filed a materially false and misleading preliminary proxy statement on Schedule 14A with the U.S. Securities and Exchange Commission in violation of the Exchange Act and their duties of candor and full disclosure. The omitted and/or misrepresented information is believed to be material to Safeway shareholders' ability to make an informed decision whether to approve the Proposed Transaction.