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XRS Corp (NASDAQ:XRSC) Investor Files Lawsuit Against Acquisition By Omnitracs, LLC

  • If you purchased shares of XRS Corp (NASDAQ:XRSC) and currently hold any of those NASDAQ:XRSC 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
XRS Corp
Security
NASDAQ: XRSC

Case Name
XRS Deal Case 09/26/2014
Type of Lawsuit
Mergers and Acquisition
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Summary

September 30, 2014 (Shareholders Foundation) - An investor, who currently holds shares of XRS Corp (NASDAQ:XRSC), filed a lawsuit in effort to halt the proposed takeover of XRS by Omnitracs, LLC for $5.60 per share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:XRSC stockholders by agreeing to sell XRS Corp. too cheaply via an unfair process to Omnitracs, LLC.

On September 2, 2014, Omnitracs, LLC announced that it has agreed to acquire XRS Corp (NASDAQ:XRSC). Subject to the terms and conditions of the agreement, Omnitracs will pay $5.60 per share of XRS Corp, which equates to $178 million in equity value.

However, the plaintiff claims that the $5.60-offer is too low and undervalues XRS Corp. Indeed, XRS Corp’s performance improved. In fact, XRS Corp reported that Total Revenue declined from $63.09 million for the 12 months period that ended on Sept. 30, 2012 to $56.20 million for the 12 months period that ended on Sept. 30, 2013, while its Net Loss of $10.04 million for the 12 months period that ended on Sept. 30, 2012 turned into a Net Income of $0.87 million for the 12 months period that ended on Sept. 30, 2013. Shares of XRS Corp (NASDAQ:XRSC) grew from $0.50 per share in November 2012 to as high as $3.23 per share on August 28, 2014. In addition, the plaintiff claims that the process is also unfair to NASDAQ:XRSC stockholders.