BALA CYNWYD, Pa., Aug. 12, 2009 (GLOBE NEWSWIRE) -- Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of Virgin Mobile USA, Inc. ("Virgin Mobile" or the "Company") (NYSE:VM) relating to the proposed acquisition by Sprint Nextel Corp., ("Sprint"). Sprint has agreed to acquire Virgin Mobile for a total equity value of in approximately $483 million.
Under the proposed agreement, Virgin Mobile shareholders will receive Sprint shares having a 10-day average closing price equivalent to $5.50 per Virgin Mobile share. The investigation concerns possible breaches of fiduciary duty and other violations of state law related to the Virgin Mobile board's approval of the proposed merger. The transaction appears to be unfair, in part, given that Virgin Mobile's second-quarter profits soared. The company earned $16.8 million, or 23 cents per share, up from a profit of $3.5 million, or 7 cents per share, in the same period a year earlier.
If you own shares of Virgin Mobile and wish to discuss the legal ramifications of the proposed acquisition by Sprint, or have any questions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact Jason L. Brodsky, Esquire or Evan J. Smith, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by e-mail at clients@brodsky-smith.com, or by calling toll free 877-LEGAL-90.