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If you purchased Federal-Mogul Corporation (NASDAQ:FDML) and currently continue to hold those NASDAQ FDML shares, and/or if you have any 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 investigation, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Investigation Overview
After Federal-Mogul Corporation said it is evaluating strategic alternatives an investigation on behalf of investors of Federal-Mogul Corporation (NASDAQ:FDML) over possible breaches of fiduciary duty was announced.
The investigation by a law firm concerns whether certain directors and officers at Federal-Mogul Corporation (NASDAQ:FDML) or others breached or will breach their fiduciary duties in connection with a potential takeover and also in the event of a buyout.
Even though Federal-Moguls 12months Total Revenue decreased from $6.913billion in 2007 to $6.219billion in 2010 and its Net Income from 2007 of $1,412.30million decreased to $161million in 2010, Federal-Mogul Corporation was able to increase its 2009 12months Total Revenue from $5.33billion to $6.219billion, an increase by almost $1billion within 12months. Federal-Mogul Corp. was also able to increase its Net Income from a substantial Net Loss of $467million in 2008 to a lower Net Loss of $45million in 2009 and a Net Income of $161million in 2010. Thus Federal-Moguls financial performance for its investors was improving over recent years.
Shares of Federal Mogul Corp. (NASDAQ: FDML) traded in the beginning of 2009 as low as $2.96 and consistently increased to $23.59 in the beginning of March 2011.
Then on March 7, a media report citing people familiar with the matter said that billionaire Carl Ican, who owns a 76% stake in Federal Mogul Corporation was in early stages of exploring a sale of Federal-Mogul Corp. Following the report FDML shares increased to $25.44 on March 8, 2011.
On March 18, 2011 Federal-Mogul Corporation announced that it has retained Lazard Ltd to assist the company in evaluating strategic alternatives to enhance shareholder value. FDML shares jumped during Friday from slightly under $23 to $25.20 per share.
The investigation monitors and concerns whether the Federal-Mogul Corp. Board of Directors will undertake an adequate and fair sales process in the event of a takeover to obtain the maximized consideration for all shareholders of Federal-Mogul Corporation (NASDAQ:FDML) and will breach their fiduciary duties to Federal-Mogul Corp. (FDML) shareholder by failing to adequately shop the Company before entering into any transaction. A potential class action lawsuit would seek to maximize the amount of money and information NASDAQ: FDML shareholders would receive in a buyout, so the law firm.
