SAN DIEGO, July 14, 2010 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit has been filed in Delaware State Court on behalf of current investors in Playboy Enterprises, Inc. (NYSE:PLA), who purchased their PLA shares before July 12, 2010, over alleged breaches of fiduciary duty by certain members of the Playboy Enterprises board of directors and others, including Hugh Hefner, arising out of the attempt to sell Playboy Enterprises, Inc. too cheaply.
Those who currently are investors in shares of Playboy Enterprises, Inc. (NYSE:PLA) and purchased their shares before July 12, 2010, should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
On Monday, July 12, 2010, Playboy Enterprises, Inc. (NYSE:PLA) ("PEI") announced that its board of directors has received a proposal from Hugh M. Hefner to acquire all of the outstanding shares of Class A and Class B common stock of Playboy Enterprises not currently owned by Hefner for $5.50 per share in cash.
Shares of Playboy Enterprises, Inc. (NYSE:PLA) traded before the news at almost $4 per share and climbed in response to the announcement to its 52 week high of $5.66 per share.
But PLA shares traded over $8.60 per share in 2008, at almost $12 per share in 2007, and over $15 per share in 2006, and Hugh M. Hefner owns 69.5% of Playboy's Class A common stock and 27.7% of Playboy's Class B common stock.
The plaintiff alleges in the complaint that the Playboy Enterprises directors breached of fiduciary duty owed to Playboy investors by their attempt to sell Playboy Enterprises, Inc. to Hefner and Rizvi Traverse at an unfair price through an unfair process. According to the plaintiff "the Going Private Plan is the product of a flawed process designed to sell PEI to Hefner and Rizvi Traverse on terms detrimental" to stockholders of Playboy.
Those who currently are investors in shares of Playboy Enterprises, Inc. (NYSE:PLA) and purchased their shares before the announcement, should contact the Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is an investor advocacy group which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The group offers help, support, and assistance for every shareholder, and investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
The Shareholders Foundation, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6931