Advance America, Cash Advance Centers (NYSE:AEA) Investor Investigation Over Potential Breaches Of Fiducary Duties In Connection With Takeover

If you are a current investor in Advance America, Cash Advance Centers (Public, NYSE:AEA)) and purchased your NYSE:AEA shares prior to the announcement, you have certain options and you should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Advance America Cash Advance Centers
Affected Securities: 
NYSE: AEA

San Diego, Feb. 16, 2012 (Shareholders Foundation) -- The announcement by Advance America, Cash Advance Centers that agreed to by acquired by Grupo Elektra, S.A.B. de C.V. for $10.50 per NYSE:AEA share prompted an investigation for investors Advance America (NYSE:AEA) shares concerning whether the offer to acquire Advance America, Cash Advance Centers Inc. and the buyout process are unfair to investors in NYSE:AEA shares.

The investigation by a law firm concerns whether Advance America, Cash Advance Centers, certain officers and directors, and/or others breached their fiduciary duties owed to Advance America, Cash Advance Centers (AEA) investors in connection with the proposed acquisition.

On Wednesday, Febryuary 15, 2012, after the market closed Advance America, Cash Advance Centers, Inc. (“Advance America“) (NYSE: AEA) and Grupo Elektra, S.A.B. de C.V. (“Grupo Elektra”) (BMV: ELEKTRA) announced that Advance America and subsidiaries of Grupo Elektra have entered into an agreement under which Grupo Elektra will acquire control of all of the outstanding shares of Advance America, a leading U.S. short-term lender, for $10.50 per share in cash. The total transaction value is approximately $780 million, including the Company's outstanding debt as of December 31, 2011.
Advance America, Cash Advance Centers, Inc. said the $10.50offer represents a 32.7% premium to the Company's closing price of $7.91 on February 15, 2012.
Following the takeover news NYSE:AEA stocks jumped from $7.91 on Wednesday to $10.54 on Thursday.

However,NYSE:AEA shares traded as recently as December 2011 at $9.33 per share, leaving some AEA stockholders with only a meager premium. In addition, at least one analyst has set the high target price for NYSE:AEA stocks at $11, thus above the current offer.

Therefore the investigation for NYSE:AEA investors concerns whether the Advance America Board of Directors undertook an adequate sales process and in particular breached their fiduciary duties to Advance America, Cash Advance Centers (NYSE:AEA) shareholders by failing to adequately shop the Company before entering into this transaction.

Advance America, Cash Advance Centers has performed well in the past for its investors. Advance America, Cash Advance Centers annual Revenue ranged over the past annual filing periods from $600.23million to $709.56million and its Net Income ranged from $35.76million to $54.38million.
Its third quarter Revenue in 2011 rose slightly from $154.23million last year to $158.88million and its third quarter Net income increased from $1.4million to $14.57million in 2011.

A potential securities class action lawsuit would seek to maximize the amount of money and information Advance America, Cash Advance Centers (NYSE:AEA) shareholders would receive in a buyout, so the law firm.