July 27, 2016 (Shareholders Foundation) - An investor who currently holds shares of Cash America International Inc (NYSE:CSH), filed a lawsuit in effort to halt the proposed takeover of Cash America International Inc by First Cash Financial Services, Inc for a value of approximately $40.90 per share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:CSH stockholders by agreeing to sell Cash America International Inc too cheaply via an unfair process to First Cash Financial Services, Inc.

On April 28, 2016, First Cash Financial Services, Inc. (NASDAQ: FCFS) and Cash America International Inc (NYSE:CSH) announced that they have entered into a merger agreement under which the two companies will combine in a tax free, all-stock transaction. Under the terms of the agreement, Cash America International Inc shareholders will receive a fixed exchange ratio of 0.84 First Cash Financial Services, Inc. (NASDAQ: FCFS) shares for each Cash America share they own. Based on a closing price of $48.69 per First Cash Financial Services, Inc. (NASDAQ: FCFS) share each Cash America International Inc shareholder will receive a value of approximately $40.90 per NYSE:CSH share.

However, plaintiff claims that the proposed consideration NYSE:CSH shareholders will receive is grossly inadequate and undervalues Cash America International Inc. Indeed, at least one analyst has set the high target price for NYSE:CSH shares at $43.00 per share. In addition, the plaintiff alleges that the process is also unfair to Cash America International stockholders.