Investigation Overview
An investigation on behalf of investors, who currently hold shares of CSRA Inc (NYSE:CSRA), was announced concerning whether the takeover of CSRA Inc. by General Dynamics is unfair to NYSE:CSRA stockholders.
The investigation by a law firm concerns whether certain officers and directors of CSRA Inc breached their fiduciary duties owed to NYSE:CSRA investors in connection with the proposed acquisition.
Fallss Church, VA based CSRA Inc. is a provider of information technology services to the United States federal government. On February 12, 2018, General Dynamics (NYSE: GD) and CSRA (NYSE: CSRA) today announced that they have entered into a definitive agreement under which General Dynamics will acquire all outstanding shares of CSRA for $40.75 in cash.
However, given that at least one analyst has set the high price target for NYSE:CSRA shares at $41.00 per share, the investigation concerns whether the offer is unfair to NYSE:CSRA stockholders. More specifically, the investigation concerns whether the CSRA Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
CSRA Inc reported that its Total Revenue rose from over $4.25 billion for the 52 weeks period that ended on April 1, 2016, to over $4.99 billion for the 52 weeks period that ended on March 31, 2017 and that its Net Income increased from $87.14 million to $304 million.