FBR & Co (NASDAQ:FBRC Investor Lawsuit Over Alleged Wrongdoing In Acquisition By B. Riley Financial, Inc

If you purchased shares of FBR & Co (NASDAQ:FBRC) and currently hold any of those NASDAQ:FBRC shares, you have certain options and you should contact the Shareholders Foundation, Inc.

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Company Name(s): 
FBR
Case Name: 
FBR Deal Case 04/19/2017
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: FBRC
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Date Filed: 
04/19/2017
Summary: 

April 19, 2017 (Shareholders Foundation) - An investor, who currently holds shares of FBR & Co (NASDAQ:FBRC), filed a lawsuit in effort to halt the proposed takeover of FBR & Co. by B. Riley Financial, Inc is unfair to NASDAQ:FBRC stockholders.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:FBRC stockholders by agreeing to sell FBR & Co. too cheaply via an unfair process to B. Riley Financial, Inc.

On February 21, 2017, B. Riley Financial, Inc. (NASDAQ: RILY) announced that it has signed a stock for stock merger agreement to acquire FBR & Co (NASDAQ:FBRC). Under the terms of the agreement, FBR & Co (NASDAQ:FBRC) shareholders are anticipated to receive 0.671 of a share of B. Riley and a pre-closing cash dividend of $8.50 for each share of FBR & Co (NASDAQ:FBRC) common stock they own, representing consideration of $18.90 based on B. Riley’s February 23, 2017 closing price.

However, plaintiff claims that the proposed consideration NASDAQ:FBRC shareholders will receive is grossly inadequate and undervalues FBR & Co. In addition, the plaintiff alleges that the process is also unfair NASDAQ:FBRC stockholders.