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If you purchased shares of Hot Topic, Inc. (NASDAQ:HOTT) prior to March 7, 2013, and currently hold any of those NASDAQ:HOTT shares, 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
Mar. 13, 2013 (Shareholders Foundation) -- An investor in shares of Hot Topic, Inc. (NASDAQ:HOTT) filed a lawsuit in effort to stop the proposed takeover of Hot Topic, Inc. by Sycamore Partners at $14.00 per NASDAQ:HOTT share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:HOTT stockholders by agreeing to sell the company too cheaply via an unfair process.
On March 7, 2013, Hot Topic, Inc. and Sycamore Partners announced that they have entered into an agreement pursuant to which Sycamore Partners will acquire Hot Topic for $14.00 per share in cash, or a total of approximately $600 million. Hot Topic, Inc said the offer represents a premium of approximately 30% over Hot Topic’s closing stock price on March 6, 2013.
However, the plaintiff alleges that the $14-offer is too low and undervalues the company. Indeed, at least one analyst has set the high target price for NASDAQ:HOTT at $16.40 per share.
On March 11, 2013, NASDAQ:HOTT shares closed at $13.84 per share