BALA CYNWYD, Pa.--(BUSINESS WIRE)--Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of MCG Capital Corporation ("MCG” or "the Company") (Nasdaq: MCGC) for possible breaches of fiduciary duty and other violations of state law in connection with the sale of the Company to PennantPark Floating Rate Capital Ltd. (“PennantPark”).
Click here to learn more about the investigation http://brodsky-smith.com/925-mcgc-mcg-capital-corporation.html, or call: 877-534-2590. There is no cost or obligation to you.
Under the terms of the transaction, MCG shareholders will receive only shares of PennantPark stock valued at $4.521 and $0.226 in cash for each share of MCG they own. Additionally, each MCG shareholder could receive an additional $0.25 per share. The transaction values MCG at $4.75 per share. The investigation concerns whether the Board of MCG breached their fiduciary duties to shareholders by failing to adequately shop the Company before agreeing to enter into this transaction, and whether PennantPark is underpaying for MCG. The transaction may both undervalue MCG and would result in a loss or no real gain for many holders of MCG stock. For example, MCG stock previously traded at $5.49 per share on July 31, 2013 and traded at $4.75 per share on January 21, 2014.
If you own shares of MCG and wish to discuss the legal ramifications of the investigation, or have any questions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact Jason L. Brodsky, Esquire or Evan J. Smith, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 510, Bala Cynwyd, PA 19004, by visiting http://brodsky-smith.com/925-mcgc-mcg-capital-corporation.html, or calling toll free 877-LEGAL-90.
Brodsky & Smith, LLC is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and class action lawsuits. The attorneys at Brodsky & Smith have been appointed by numerous courts throughout the country to serve as lead counsel in class actions and have successfully recovered millions of dollars for our clients and shareholders. Attorney advertising. Prior results do not guarantee a similar outcome.