An investor in shares of 99 Cents Only Stores filed a lawsuit in effort to block the proposed buyout by the Schiffer/Gold and Leonard Green & Partners, L.P.
According to the complaint the plaintiff alleges that the defendants breached their fiduciary duties arising out of the attempt to sell 99 Cents Only Stores (NYSE:NDN) too cheaply via an unfair process to Schiffer/Gold and Leonard Green & Partners, L.P.

On Friday, March 11, 2011, 99 Cents Only Stores® (NYSE: NDN) had announced that its board of directors has received a proposal from members of the Schiffer/Gold family, together with Leonard Green & Partners, L.P. ( LGP ), to acquire the Company in a going private transaction for $19.09 per share in cash.

99 Cents Only Stores said the Schiffer/Gold family owns approximately 33% of the Company's outstanding common stock, and the letter states that they are prepared to contribute a substantial portion of their existing Company stock ownership as part of the proposed transaction.

Indeed shares of 99 Cents Only Stores (NDN) jumped in response to the buyout news from $16.92 to $19.91 on Friday, March 11, 2011.

However NDN shares traded as early as September 2010 as high as $18.88 per share, leaving 99Cents Only Stores investors with only a meager premium. Further one analyst has set a target price for the Company’ stock at $22.00 per share. In addition 99 Cents Only Stores has performed well in the past for its investors. 99 Cents Only Stores’ 12months Total Revenue increased from $1.104billion reported on March 31, 2007 to $1.355billion reported on March 27, 2010. Its Net Income surged during the same time frame from $9.76million to $60.45million.

In addition FBR Capital Markets Corp, which has 5.44% stake in 99 Cents Only Stores, disclosed in a regulatory filing that it believes the offer substantially undervalues 99 Cents Only Stores.