True Religion Apparel, Inc. (NASDAQ:TRLG) Investor Files Lawsuit Against Takeover By TowerBrook Capital Partners L.P.

If you purchased a large amount of shares of the True Religion Apparel, Inc. (NASDAQ:TRLG) prior to May 10, 2013 and currently hold any of those NASDAQ:TRLG shares, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
True Religion
Case Name: 
True Religion Deal Case 05/17/2013
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: TRLG
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Date Filed: 
05/17/2013
Summary: 

May 20, 2013 (Shareholders Foundation) - An investor, who currently holds NASDAQ:TRLG shares, filed a lawsuit in effort to stop the proposed takeover of True Religion Apparel, Inc. by TowerBrook Capital Partners L.P. at $32.00 per NASDAQ:TRLG share.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:TRLG stockholders by agreeing to sell the company too cheaply via an unfair process.

On May 10, 2013, True Religion Apparel, Inc. announced that it has entered into a merger agreement with TowerBrook Capital Partners L.P. in a transaction valued at approximately $835 million.Under the terms of the merger agreement, TowerBrook Capital Partners L.P. will acquire all of the outstanding shares of True Religion Apparel, Inc. common stock for $32.00 per share in cash.

However, the plaintiff claims that the $32-offer is too low and undervalues the company. Indeed, at least on analyst has set the high target price for NASDAQ:TRLG shares at $38.00 per share. Furthermore, True Religion Apparel’s financial performance improved lately. For instance, True Religion Apparel, Inc. reported that its Total Revenue rose from $365.71 million in 2010 to $467.29 million in 2012 and that its Net Income increased from $43.50 million in 2010 to $46.02 million in 2012. Shares of True Religion Apparel, Inc. grew from as low as $8.18 per share in March 2009 to as high as $36.18 per share in February 2012. Currently NASDAQ:TRLG shares are at $26.00 per share.

NASDAQ:TRLG shares closed on May 20, 2013, at $31.56 per share.