Financial Federal Corporation Board Under Investigation

If you are currently an investor in shares of Financial Federal Corporation (Public, NYSE:FIF), and purchased the shares before November 23, 2009, and / or have additional information relating to the investigation, you should contact the Shareholders Foundation.

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Company Name(s): 
Financial Federal Corporation
Affected Securities: 

Investigations on behalf of current investors Financial Federal Corporation (Public, NYSE:FIF), who purchased the shares before November 23, 2009, over potential breaches of fiduciary duty and other violations of state law in connection with an alleged unfair takeover price were announced.

The investigation by a law firm focus on potential breaches of fiduciary duty and other violations of state law by the Board of Directors of Financial Federal Corp. arising out of their attempt to sell Financial Federal Corp. to People's United Financial, Inc. On November 23, 2009 Financial Federal Corporation (NYSE: FIF) and People's United Financial, Inc. (Nasdaq: PBCT), the holding company for People's United Bank, announced an agreement that People’s United Financial acquires Financial Federal Corporation in a stock and cash transaction valued at approximately $738 million. Under the terms of the definitive agreement Financial Federal Corporation shareholders will receive $11.27 in cash and one share of People's United Financial common stock. Based on the closing price of People's United on November 20, 2009, the transaction is valued at $27.74 per Financial Federal Corporation share. According to Financial Federal Corporation by both companies' boards of directors approved the agreement.

But according to an investigation by a law firm “the transaction appears to be unfair” to current investors of Financial Federal Corporation (Public, NYSE:FIF) because the “offer to purchase Financial Federal Corporation appears opportunistically timed to take advantage of the current economic downturn” and is focused “on the potential unfairness of the price to Financial Federal Corporation shareholders and the process by which the Company’s Board of Directors considered and approved the transaction.” The investigation “concerns whether the Financial Federal Board of Directors breached their fiduciary duties to Financial Federal stockholders by failing to adequately shop the Company before entering into this transaction and whether People's United is underpaying for Financial Federal shares, thus unlawfully harming Financial Federal stockholders

Financial Federal Corporation, located in New York, is a financial services company. The Company is engaged in providing collateralized lending, financing and leasing services to small and medium-sized businesses in the general construction, road and infrastructure, construction and repair, road transportation and refuse industries. Financial Federal Corporation reported on July 31, 2008 for a 12month period Total Revenue of $188.40million with a Net Income of $50.08million and on July 31, 2009 for the past 12 months Total Revenue of $157.49million with a Net Income of $43.15million. Financial Federal Corporation shares (FIF) traded at $28.00 per share after the announcement and at about $21.00 days before the announcement.