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If you are a current investor in Dynegy Inc. (NYSE:DYN), and/or have information relating the investigation, you have certain options and you should contact the Shareholders Foundation, Inc.
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
July 6, 2012, (Update) -- Dynegy Inc. announced on July 6, 2012, that it filed a voluntary petition to reorganize under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York, Poughkeepsie Division.
At least two investors in Dynegy Inc. (NYSE:DYN) shares filed lawsuits in State Court against the Dynegy board of directors for selling Dynegy too cheaply through an unfair process to the Blackstone Group.
According to the complaint the plaintiff alleges that the defendants breached their fiduciary duty for selling Dynegy Inc via an unfair process at an unfair price. On Friday, August 13, 2010, Dynegy Inc. (NYSE:DYN) announced that it has entered into a merger agreement pursuant to which it will be acquired by an affiliate of The Blackstone Group L.P. (NYSE:BX) in a transaction valued at approximately $4.7 billion, including the assumption of existing debt. Whiles Dynegy Inc. reported over the years substantial revenue like $1.77billion in 2006, $2.918billion in 2007, $3.324billion in 2008, and $2.468billion in 2009, Dynegy’s Net Income went from $264million in 2007, to $174million in 2008, and a Net Loss of $1.247billion in 2009. Under the terms of the merger agreement, Dynegy stockholders will receive $4.50 in cash for each outstanding share of Dynegy common stock they own. According to Dynegy its Board of Directors has approved the merger agreement and the offer represents a 62 percent premium to the closing share price on August 12, 2010.
But DYN shares traded as early as June 25, 2010 above the current offer at $4.65per share. DYN shares traded after the split on May 24, 2010 as high as $5.23 per share on May 28, 2010 and at least one analyst set a price target for Dynergy stock at $7.50 per share.. Before the May split DYN shares traded in the past 6months as high as $8.35 per share, and reached a 52weekhigh of $13.35 per share. DYN shares traded during 2008 as high as $47.10 per share, during 2007 as high as $52.50 per share, and at an all time high of $285 per share in 2001. The plaintiff alleges, among other things, that just last week before the proposed acquisition was announced the stock had decreased 22%.