The Law Office Of James C. Kelly Announces Investigation Into Possible Breaches Of Fiduciary Duty By The Board Of Advance America, Cash Advance Centers, Inc. With The Sale Of The Company To The Grupo Elektra
NEW YORK, Feb. 16, 2012 /PRNewswire/ -- The Law Office of James C. Kelly is investigating the Board of Directors of Advance America, Cash Advance Centers, Inc. ("Advance America" or the "Company") (NYSE: AEA) for possible breaches of fiduciary duty and other violations of state law in connection with the sale of the Company to Grupo Elektra, S.A.B. de C.V. (BMV: ELEKTRA.MX). Under the terms of the transaction, Advance America shareholders will receive $10.50 for each share of Advance America stock they own. The total transaction value is approximately $780 million, including the Company's outstanding debt as of December 31, 2011. It is expected that Patrick O'Shaughnessy, Advance America's President and Chief Executive Officer, and other members of senior management will continue in their roles with the Company after the acquisition is completed. The investigation concerns whether Advance America's Board of Directors breached their fiduciary duties to stockholders by failing to adequately shop the company before entering into this transaction and whether Grupo Elektra is underpaying for Advance America shares, thus unlawfully harming stockholders. Indeed, at least one analyst has projected that the true going forward inherent value of the company is worth at least $11 per share. If you own shares of Advance America and wish to obtain additional information, contact The Law Office of James C. Kelly. Please contact James C. Kelly, Esq., by telephone at (888) 643-7517 or e-mail at email@example.com. The Law Office of James C. Kelly is a New York City-based law firm with significant experience representing investors in merger-related shareholder class actions, shareholder derivative actions, and securities fraud class actions. For more information about the firm, please visit its website at http://www.jckellylaw.com. Attorney advertising. Prior results do not guarantee a similar outcome.
The ex-dividend date for Advance America Cash Advance Centers (NYSE:AEA) is tomorrow, February 23, 2012. Owners of shares as of market close today will be eligible for a dividend of 6 cents per share. At a price of $10.41 as of 10 a.m., the dividend yield is 2.4%.
Advance America Cash Advance Centers (NYSE:AEA) is trading at unusually high volume Thursday with 16.6 million shares changing hands. It is currently at 30.9 times its average daily volume and trading up $2.59 (+32.7%).
Advance America Cash Advance Centers (NYSE:AEA) hit a new 52-week high Tuesday as it is currently trading at $9.39, above its previous 52-week high of $9.32 with 352,353 shares traded as of 1:34 p.m. ET. Average volume has been 534,400 shares over the past 30 days.