BALA CYNWYD , Pa., Oct. 12, 2010 (GLOBE NEWSWIRE) -- Law office of Brodsky & Smith, LLC announces that a class action lawsuit has been filed in Delaware Chancery Court asserting, among others, a breach of fiduciary duty claim against the Board of Directors of Capital Gold Corporation ("Capital Gold" or the "Company") (AMEX:CGC) relating to the proposed acquisition by Gammon Gold Inc. ("Gammon Gold") (NYSE:GRS).
Under the terms of the offer, Capital Gold shareholders would receive stock and cash for their shares - 0.5209 common shares of Gammon Gold and $0.79 in cash for each share of Capital Gold common stock. The transaction appears to be unfair, in part, given that Capital Gold stock was trading at $4.83 on September 30, 2010, yet the offer from Gammon Gold is valued at only $4.44.
If you own shares of Capital Gold and wish to discuss the legal ramifications of the proposed transaction, 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. The firm has not filed a complaint but will obtain a copy of the filed complaint upon request.