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Quixote Corporation Shareholders File Lawsuit

 

If you are currently an investor in shares of Quixote Corporation (Public, NASDAQ:QUIX), and purchased the shares before December 30, 2009, you have certain options and you should contact the Shareholders Foundation.

You may contact us by using this form, or by sending an email to mail@shareholdersfoundation.com, or calling us at (858) 779-1554.

Company Name(s): 
Quixote Corporation
Case Name: 
Quixote Corporation Deal Case 01/13/2010
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: QUIX
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Date Filed: 
01/13/2010
Class Period End: 
12/30/2009
Court of Filing: 
Cook County Circuit Court
Summary: 

An investor in Quixote Corp. filed a lawsuit in Cook County Circuit Court on behalf of current investors Quixote Corporation (Public, NASDAQ:QUIX), who purchased QUIX shares before December 30, 2009, charging Quixote’s board of directors with a breach of its fiduciary duties to company shareholders.

According to the complaint filed on January 13, the plaintiff alleges that each defendant, among other things, failed to disclose: information regarding the conflict of interests of the company’s directors, the financial basis behind the fairness opinion by the company’s financial advisor that deemed the sale agreement to be fair, and details of the sale process that shareholders believe they are entitled to know.

On December 30, 2009, Quixote Corporation (NASDAQ:QUIX) and Trinity Industries, Inc. (NYSE:TRN) announced that they have reached a definitive agreement for Trinity to acquire the outstanding common shares and equivalents of Quixote for cash of $6.38 per share, or approximately $61 million and that the transaction has been unanimously approved by Quixote's Board of Directors.

According to the complaint the plaintiff raises four substantive allegations; the first being Quixote is a strong company with the potential for growth. The complaint points to statements from Reimer in the fourth quarter 2009 earnings release in which Reimer expressed satisfaction with the company’s reduction in costs, its return to profitability and signs of improving demand.

Shares of Quixote Corporation (QUIX) traded at $6.34 per share after the announcement and at $2.99 per share the trading day before the news. QIUX shares traded at $8.31 per share in Sept. 08, at $12.00 per share in April 08, at $18.77per share in Jan ’08, and over $20 per share in 2007.Quixote Corporation, located in Chicago, IL, through its subsidiaries, develops, manufactures and markets highway and transportation safety products to protect, direct and inform motorists and road workers in both domestic and international markets. As of June 30, 2009, the Company operated in two segments: Protect and Direct segment, and Inform segment. The Protect and Direct segment provides solutions for improving safety on the roads either by minimizing the severity of crashes that occur or by preventing crashes from occurring by directing or guiding traffic. Quixote Corporation reported on June 30, 2008 for the past 12 months Total Revenue of $101.81million and on June 30, 2009 for the past 12 months Total Revenue of $94.09million.

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