NaviSite, Inc. Investor Investigations Over Possible Breaches Of Fiduciary Duty

If you purchased NaviSite, Inc. (NASDAQ:NAVI) and currently continue to hold those NAVI shares, and/or if you have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation, Inc.

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After NaviSite, Inc. announced that its board agreed to takeover of NaviSite by Time Warner Cable an investigation for investors of NaviSite, Inc. (NASDAQ:NAVI) questioning the potential unfairness of the proposed buyout and whether certain officers and directors breached their fiduciary duty was announced.

The investigation by a law firm concerns whether certain directors and officers breached their fiduciary duties in connection with the merger.

On Tuesday, February 1, 2011, NaviSite, Inc. (NASDAQ: NAVI) and Time Warner Cable Inc. (NYSE: TWC) announced after the market closed that they have entered into an agreement under which Time Warner Cable will acquire NaviSite for $5.50 per NAVI share in cash, or a total equity value of approximately $230 million.
NaviSite said the offer represents a 33% premium to NaviSite’s Tuesday's closing price. Indeed, shares of NaviSite (NASDAQ: NAVI) traded before the announcement at roughly $4.20 per share and increased in response to the takeover news to $5.48 per share.

But NaviSite has performed well for its shareholders in the past. NaviSite reported over the last four filings periods consistent 12months Total Revenue ranging between $123.21 and $132.13million with lately a Net Income of $13.47million. Additionally NaviSite reported stronger than expected earnings for the first quarter of 2011.
Therefore the investigation concerns whether NaviSite Board of Directors undertook an adequate and fair sales process to obtain fair consideration for all shareholders of NaviSite, Inc. (NASDAQ:NAVI) and specifically breached their fiduciary duties to NaviSite, Inc. (NAVI) shareholder by failing to adequately shop the Company before entering into this transaction. A potential class action lawsuit would seek to maximize the amount of money and information NaviSite shareholders would receive in a buyout, so the law firm.