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LaBarge, Inc. Investor Files Lawsuit Against Buyout

  • If you purchased LaBarge, Inc. (AMEX:LB) and currently continue to hold those AMEX: LB shares, you have certain options and you should contact the Shareholders Foundation, Inc.

  • 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

Company
LaBarge, Inc.
Security
AMEX: LB

Case Name
LaBarge Deal Case 04/15/2011
Type of Lawsuit
Mergers and Acquisition
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Summary

An investor in LaBarge, Inc. (AMEX:LB) shares filed a lawsuit in State Court in effort to stop the takeover of LaBarge under the current conditions.
According to the complaint the plaintiff alleges that the defendants breached their fiduciary duties arising out of the attempt to sell LaBarge too cheaply via an unfair process to Ducommun Inc.

On Monday, April 4, 2011 St. Louis based LaBarge, Inc. (NYSE Amex: LB) had announced that they have entered into an agreement under which Ducommun Incorporated will acquire LaBarge, Inc for a purchase price of $19.25 per share in cash or a transaction valued at approximately $340 million, including debt assumed and net of cash acquired.

However the plaintiff alleges that the offer significantly undervalues LaBarge and its top executives signed a lucrative deal for themselves but left shareholders poorly compensated. In fact the offer represents only a meager premium, given that shares of LaBarge, Inc. rose from $17.94 during Friday’s trading to $19.17 on Monday or less than 7%.

Furthermore, the plaintiff claims that the $19.25 per share offer “fails to reflect the substantial value” of future LaBarge contracts. Indeed, LaBarge’s financial performance was increasing over the past years. LaBarge’s 52week Total Revenue rose from $235.20million reported on July 1, 2007 to $289.30million reported on June 27, 2010. Its Net Income increased over the same times frame from $11.34million to lately $14.89million. Furthermore LaBarge, Inc said that certain officers and directors have already agreed to vote a number of common shares representing approximately 19 percent of the voting power of LaBarge, Inc in favor of the merger.