NEW YORK, June 22, 2015 /PRNewswire/ -- Harwood
Feffer LLP (www.hfesq.com) announces that it is investigating
potential legal claims against the board of directors of Martha
Stewart Living Omnimedia, Inc. ("Martha
Stewart: or the "Company") (NYSE: MSO) regarding possible
breaches of fiduciary duties and other violations of law related to
the Company's entry into an agreement to be acquired by Sequential
Brands Group, Inc. ("Sequential Brands") (NASDAQ CM: SQBG), in a
transaction valued at approximately $353
million.
Under the terms of the agreement, shareholders of Martha Stewart will be entitled to elect to
receive either (a) $6.15 in cash or
(b) a number of shares of a newly formed public holding company
("TopCo") common stock equal to $6.15
divided by the volume weighted average price of Sequential Brands
common stock during the five-day period ending on the trading day
immediately prior to closing, for each share of Martha Stewart common stock held.
The investigation concerns whether Martha Stewart's board of directors failed
adequately to shop the Company and obtain the best possible value
for Martha Stewart's shareholders
before entering into an agreement with Sequential Brands.
Upon announcement of the acquisition agreement, Martha Stewart shares fell approximately 14%
from their September 19 closing price
of $6.98 to $6.02 per share.
Martha Stewart's stock closed at
$5.10 on June
17, an 18% gain in 2015, fueled in part by speculation of an
impending sale. When reports surfaced on June 18 that Sequential Brands was near to
announcing an acquisition for the Company, shares in Martha Steward surged, with investors
speculating that a buyout could drive the stock up to $8 or even $9 per
share. But such valuations may prove to be terribly
inflated.
Our investigation concerns whether the Company's board of
directors is fulfilling its fiduciary duties, maximizing the value
of the Company, disclosing all material benefits and costs, and
obtaining full and fair consideration for Company
stockholders.
If you own Martha Stewart shares
and wish to discuss this matter with us, or have any questions
concerning your rights and interests with regard to this matter,
please contact:
Benjamin I Sachs-Michaels, Esq.
Robert I. Harwood, Esq.
Harwood Feffer LLP
488 Madison Avenue
New York, New York 10022
Phone Numbers: (877) 935-7400
(212)935-7400
Email: bsachsmichaels@hfesq.com
Website: http://www.hfesq.com
Follow us on Twitter: @HarwoodFeffer
Harwood Feffer has been
representing individual and institutional investors for many years,
serving as lead counsel in numerous cases in federal and state
courts. Please visit the Harwood Feffer LLP website
(http://www.hfesq.com) for more information about the firm.
Attorney Advertising. The law firm responsible for this
advertisement is Harwood Feffer LLP (www.hfesq.com). Prior results
do not guarantee or predict a similar outcome with respect to any
future matter.
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SOURCE Harwood Feffer LLP
