RailAmerica, Inc. (NYSE:RA) Investor Investigation Over Potential Takeover

If you purchased shares of RailAmerica, Inc. (NYSE:RA) shares prior to the announcement, 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 mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Affected Securities: 

May 30, 2012 (Shareholders Foundation) -- Following the announcement by RailAmerica, Inc. (NYSE:RA that it is considering strategic alternatives, including a potential sale of the company, prompted an investigation on behalf of investors of RailAmerica, Inc. (NYSE:RA) concerning whether a potential takeover would be unfair for NYSE:RA stockholders and whether certain RailAmerica directors breach their fiduciary duties in the event of an acquisition.

The investigation by a law firm is at a preliminary stage and monitors a possible takeover. It concerns whether RailAmerica, certain of its officers and directors, and/or others breach their fiduciary duties owed to RailAmerica, Inc. (NYSE:RA) investors in the event of a takeover.

On May, 22, 2012, RailAmerica, Inc. (NYSE: RA) stated that its Board of Directors is considering strategic alternatives, which may include a sale of the Company and that in connection with its evaluation, RailAmerica, Inc. is engaged in preliminary discussions with third parties regarding a potential sale of RailAmerica, Inc.

However, RailAmerica’s financial performance improved over the past three years. Its annual Revenue increased from $425.77million in 2009 to $551.12million in 2011 and its Net Income rose over the respective time periods from $15.84million to $36.87million.

Shares of RailAmerica, Inc. (NYSE:RA) rose from as low as $9.24 per share in October 2010 to over $24 per share on May 23, 2012.

Therefore the investigation focuses whether the RailAmerica board of directors will undertake an adequate a fair sales process to obtain fair consideration for all shareholders of RailAmerica, Inc. (NYSE:RA) and will breach their fiduciary duties to NYSE:RA shareholder by failing to adequately shop the Company before entering into any transaction.