November 2010 - Alberto-Culver Company has agreed to settle a shareholder lawsuit over the company's proposed $3.7 billion takeover by Unilever NV. The settlement is designed to address concerns that the merger agreement might have dissuaded other prospective acquirers from making better takeover bids. It calls for Alberto Culver to lower the break-up fee it would pay to back out of the merger to $100 million from $125 million, and requires its board to consider bids that qualify as superior. Alberto Culver also agreed to postpone the planned shareholder vote on the merger to Dec. 17 from Dec. 13.
September 2010 - At least three investors in Alberto-Culver Company (NYSE:ACV) have filed lawsuits in State Court against Alberto-Culver directors alleging breaches of fiduciary duties arising out of their attempt to sell Alberto-Culver too cheaply to Unilever PLC.

The plaintiffs allege the board members breached their fiduciary duties owed to Alberto-Culver investors by failing to sell Alberto-Culver via an unfair process at an unfair price.

On Monday, September 27, 2010, Alberto Culver Company (NYSE: ACV) had announced that it has entered into an agreement in which Unilever PLC will acquire all of the outstanding shares of Alberto Culver for $37.50 per share in cash, valuing the company at approximately $3.7 billion. According to Alberto-Culver Company its board of directors had approved the merger agreement and the $37.50 per share price represents a 33 percent premium to Alberto Culver's 12-month volume weighted average share price and an 18 percent premium to its all-time high closing share price achieved earlier this year.

But one plaintiff says “the process leading up to the board’s decision to agree to the proposed transaction was severely flawed, and not in any way designed to elicit the most economically favorable transaction for Alberto-Culver’s shareholders”. Shares of Alberto-Culver Company (NYSE: ACV), which traded before the announcement at $31.66 per share, increased in response to the takeover news by over 18% to $37.64 per share thus above the current offer. The plaintiffs say the directors, who are obligated to get the highest price, have failed to get top dollar for Alberto Culver, “reduced the possibility of a maximizing shareholder value by agreeing to a punitive $125 million termination fee”, and give Unilever PLC a booming business at fire-sale prices. Alberto-Culvers’ 12 months revenue increased from $1.186billion reported on September 30, 2006 to $1.43398billion reported on September 30, 2009. Its Income after Tax for the same time periods almost doubled. While Alberto-Culver Company was able to report $65.84million Income after tax in 2006, it was able to report $117.83million in 2009. Additionally, in the third quarter, Alberto-Culver reported net sales of $417.6 million, an increase of 18.8%, compared to $351.6 million in the same quarter for the prior year. Further, Alberto Culver reported earnings per share of $0.39, $0.02 higher than analyst estimates of $0.37.