Transcend Services, Inc. (NASDAQ:TRCR) Investor Investigation over Potential Breaches Of Fiduciary Duties In Takeover

If you are a current investor in Transcend Services, Inc. (NASDAQ:TRCR) shares and purchased your Transcend Services, Inc. (NASDAQ:TRCR) shares prior to March 7, 2012, 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): 
Transcend Services
Affected Securities: 

San Diego, March 07, 2012 (Shareholders Foundation) -- Following the announcement by Transcend Services, Inc. (NASDAQ:TRCR)) that it has agreed to by acquired by Nuance Communications, Inc. for $29.50 per Transcend Services, Inc. (NASDAQ:TRCR) caused an investigation for investors in Transcend Services, Inc. (NASDAQ:TRCR) shares concerning whether the offer to acquire Transcend Services, Inc. and the buyout process are unfair to investors in NASDAQ:TRCR shares.

The investigations by law firms concern whether Transcend Services, certain officers and directors, and/or others breached their fiduciary duties owed to Transcend Services, Inc. (NASDAQ:TRCR) investors in connection with the proposed acquisition.

On Wednesday, March 7, 2012, Transcend Services, Inc. (NASDAQ: TRCR) and Nuance Communications, Inc. (NASDAQ: NUAN) announced an agreement for Nuance Communications, Inc. to acquire Transcend Services, Inc. for approximately $300 million, net, in cash.

Under the terms of the proposed transaction Nuance Communications, Inc. has agreed to acquire Transcend Services, Inc. through a cash tender offer of $29.50 per Transcend Services, Inc. share.

Transcend Services, Inc. said the offer represents an approximately 30 percent premium over Transcend’s 90-day volume weighted average share price.

However, NASDAQ:TRCR shares traded as recently as October 24, 2011 at $28.71, respectively on November 4, 2011 at $28.45, thus leaving some NASDAQ:TRCR stockholders with only a meager premium. IN fact, NASDAQ:TRCR shares traded in July 2011 as high as $29.90 per share thus offering those stockholders a discount. Furthermore, at least one analyst has set the high target price for NASDAQ:TRCR shares at $34 per share.

Therefore the investigation for NASDAQ:TRCR investors concerns whether the Transcend Services Board of Directors undertook an adequate sales process and in particular breached their fiduciary duties to Transcend Services, Inc. (NASDAQ:TRCR) shareholders by failing to adequately shop the Company before entering into this transaction.

Despite the analysts target price and higher stock prices in July 2011 than the current offer Transcend Services, Inc has also performed well for its investors in the past. Its annual Revenue rose from $48.70million in 2008 to $125.06million in 2011 and its Net Income surged from $5.77million in ’08 to $19.04million in 2011.

Thus a potential securities class action lawsuit would seek to maximize the amount of money and more information Transcend Services, Inc. (NASDAQ:TRCR) shareholders would receive in the buyout, so the law firm.