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 Quest Software, Inc. (NASDAQ: QSFT) in connection with their efforts to sell the company to affiliates of Insight Venture Partners. 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 March 9, 2012, Quest Software announced that it had entered into a definitive merger agreement to be acquired by affiliates of Insight in an all-cash transaction. According to the terms of the deal, Quest Software shareholders not affiliated with the buyout group will receive $23.00 for each share of the company they own.
Robbins Umeda LLP's investigation focuses on whether Quest Software's board is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company's recent positive financial results. Notably, the transaction represents only an 18% premium to Quest Software's stock price. In contrast, over the past 10 years, buyers have paid an average premium of over 49% in comparable transactions, according to data from Bloomberg.
Further, on February 14, 2012, Quest Software announced financial results for the fourth quarter of fiscal year 2011 that beat analyst expectations. The Company reported quarterly revenue of $245.89 million, a 13.4% increase compared to the prior year's fourth quarter revenues of $216.8 million and better than analyst expectations of $242.8 million. In addition, Quest Software traded higher than the offer price as recently as July 11, 2011, trading as high as $23.03, and last closed over the offer price on July 8, 2011, closing at $23.03. Also, at least two market analysts released target prices for Quest Software that values the company's stock at $26.00 and $29.00 per share, respectively, which is higher than the value being offered by Insight as a part of the proposed transaction.
Robbins Umeda attorneys highlight that Quest Software shareholders have the option to file a class action lawsuit against the company to secure the best possible price for the company's shareholders and the disclosure of material information to shareholders so they can vote on the transaction in an informed manner.
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.
Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/quest-software/
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