SAN DIEGO--(BUSINESS WIRE)--Shareholder rights firm Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by members of the board of directors of Focus Media Holding Limited (NASDAQ: FMCN) in connection with their actions in relation to a non-binding proposal letter from affiliates of FountainVest Partners, The Carlyle Group, CITIC Capital Partners, CDH Investments, and China Everbright Limited, and Mr. Jason Nanchun Jiang, Chairman of the Board and Chief Executive Officer of Focus Media, and his affiliates (collectively, the "Consortium Members") that proposes a going-private transaction. Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Gregory E. Del Gaizo at (800) 350-6003, firstname.lastname@example.org, or via the shareholder information form on the firm's website.
On August 13, 2012, Focus Media announced that on August 12, 2012, it had received a proposal for a going-private transaction from the Consortium Members. Under the terms of the proposal, Focus Media shareholders would receive $27.00 in cash for each American depository share ("ADS"), or $5.40 in cash per ordinary share.
Robbins Umeda LLP's investigation focuses on whether the board of directors at Focus Media is undertaking a fair process to fully consider the proposal by the Consortium Members and obtain maximum value to adequately compensate its shareholders. Notably, there are eight analyst price targets for Focus Media that are higher than the current offer of $27.00 per ADS, with Riedel Research Group maintaining a price target of $46.00 since June 6, 2012. Of further concern is whether the board of directors of Focus Media is acting for their own benefit in light of the fact that Mr. Jiang, Chairman of the Board and Chief Executive Officer of Focus Media, is part of the Consortium seeking to take Focus Media private.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsumeda.com.
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