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Lorillard Inc. (NYSE:LO) Investor Files Lawsuit Over Alleged Wrongdoing In Takeover By Reynolds American Inc

  • If you purchased shares of Lorillard Inc. (NYSE:LO) and currently hold any of those NYSE:LO, you shares 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
Lorillard Inc.
Security
NYSE: LO

Case Name
Lorillard Deal Case 07/18/2014
Type of Lawsuit
Mergers and Acquisition
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Summary

July 18, 2014 (Shareholders Foundation) - An investor, who currently holds shares of Lorillard Inc. (NYSE:LO), filed a lawsuit in effort to halt the proposed takeover of Lorillard Inc. by Reynolds American Inc for a value of $68.88 per share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:LO stockholders by agreeing to sell Lorillard Inc. too cheaply via an unfair process to Reynolds American Inc.

On July 15, 2014, Reynolds American Inc. (NYSE: RAI), the parent company of R.J. Reynolds Tobacco Company, and Lorillard Inc. (NYSE:LO) announced that they have entered into a agreement in which Reynolds American Inc has agreed to acquire Lorillard Inc. (NYSE:LO) in a cash-and-stock transaction currently valued at $68.88 per Lorillard Inc. (NYSE:LO) share, or a total of $27.4 billion, including the assumption of net debt.

However, the plaintiff claims that the takeover of Lorillard Inc. by Reynolds American Inc undervalues Lorillard Inc. Indeed, Lorillard Inc. reported that its annual Total Revenue rose from over $6.62 billion in 2012 to $6.95 billion in 2013 and that its Net Income increased from over $1.09 billion in 2012 to $1.18 billion in 2013. Shares of Lorillard Inc. (NYSE:LO) grew from $38.20 per share in March 2013 to as high as $67.45 per share on July 14, 2014. In addition, the plaintiff alleges that the process is also unfair to NYSE:LO stockholders.

On July 18, 2014, NYSE:LO shares closed at $61.68 per share.