infoGROUP, Inc. Board Under Investigation

An investigation on behalf of current long term shareholders in infoGROUP Inc (Public, NASDAQ:IUSA) over potential breaches of fiduciary duty and other violations of state law in connection with an alleged unfair takeover was announced.

The investigation by la aw firm focuses on potential breaches of fiduciary duty and other violations of state law arising out of the attempt to take over infoGROUP Inc (Public, NASDAQ:IUSA) by CCMP Capital. infoGROUP Inc, located in Omaha, NE, is a provider of sales leads, mailing lists, direct marketing, database marketing, e-mail marketing and market research solutions.
Private equity firm CCMP Capital has reportedly agreed to buy data and marketing services company Infogroup Inc (IUSA.O) for about $460 million. Under the terms of the offer, Infogroup shareholders would receive $8.00 for each share of Infogroup stock they own.

According to one investigation by a law firm “the transaction appears to be unfair” to current investors of infoGROUP Inc (Public, NASDAQ:IUSA) because the “offer to purchase infoGROUP Inc (IUSA) appears opportunistically timed to take advantage of the current economic downturn”.
Shares of infoGROUP Inc (NASDAQ:IUSA) traded at $8.16 per share after the announcement, and at $8.48 days before the news. IUSA shares were down from $8.99 per share as early as November 10, 2009 and $8.90 per share on November 23, 2009. infoGROUP Inc reported in 2007 Total Revenue of $688.77million with a Net Income of $40.94million, in 2008 Total Revenue of $588.69million with a Net Income of $4.81million, and in 2009 Total Revenue of $499.91million.

The investigation concerns “whether the InfoGROUP Board of Directors breached their fiduciary duties to InfoGROUP shareholders given that the offer price is less than the $8.99 per share that InfoGROUP traded at as recently as November 10, 2009 and at least one analyst set a price target for InfoGROUP stock at $10.00 per share.”