China TransInfo Technology Corp. (NASDAQ:CTFO) Investor Investigation Over Potential Breaches Of Fiduciary Duties In Connection With The Proposed Buyout

If you purchased shares of China TransInfo Technology Corp. (NASDAQ:CTFO) prior to June 8, 2012, and currently hold any of those NASDAQ:CTFO 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 investigation, please use this form. You may also send an email to, or call us at (858) 779-1554.
Company Name(s): 
China TransInfo Technology
Affected Securities: 

June 11, 2012 (Shareholders Foundation) -- An investigation on behalf of investors in NASDAQ:CTFO shares was announced concerning whether the offer to acquire China TransInfo Technology Corp. at $5.80 per share and the takeover process are unfair to investors in NASDAQ:CTFO shares.

The investigation by a law firm concerns whether certain officers and directors of China TransInfo Technology Corp. breached their fiduciary duties owed to NASDAQ:CTFO investors in connection with the proposed acquisition.

On June 8, 2012, China TransInfo Technology Corp. (NASDAQ: CTFO) (announced that it has entered into an Agreement and Plan of Merger with TransCloud Company Limited, a Cayman Islands exempted company with limited liability and indirectly wholly owned by Mr. Shudong Xia, who is also the CEO, President and Chairman of the Board of China TransInfo Technology Corp. With certain exceptions Pursuant to the terms and subject to the conditions of the Merger Agreement, each share of the common stock of China TransInfo Technology Corp issued and outstanding immediately prior to the effective time of the Merger will be converted into the right to receive US$5.80 in cash without interest.

Following the takeover news shares of China TransInfo Technology Corp. (NASDAQ:CTFO) jumped from $4.52 on Thursday to $5.39 per share on June 8, 2012.

However, China TransInfo Technology’s financial performance improved over the past years. Its annual Revenue increased from $29.37million in 2008 to $167.02million in 2011 and its Net Income rose from $11.09million in ’08 to $13.97million in 2011.

In addition, NASDAQ:CTFO shares traded in February 2012 as high as $5.13 per share, thus significantly shrinking the premium for certain NASDAQ:CTFO investors.

Therefore the investigation for NASDAQ:CTFO investors concerns whether the proposed transaction is unfair to China TransInfo Technology Corp. stockholders. Specifically, the investigation focuses on whether the China TransInfo Technology Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.