Shareholder Alert: The Briscoe Law Firm and Powers Taylor, LLP Investigate the Board of Pinnacle Data Systems, Inc. Concerning the Sale of PNS to Avnet, Inc.
DALLAS, Nov. 11, 2011 /PRNewswire/ -- Former United States Securities and Exchange Commission attorney Willie Briscoe and the securities litigation firm of Powers Taylor, LLP are investigating the sale of Pinnacle Data Systems, Inc. ("Pinnacle Data" or "PNS") (AMEX: PNS) to Avnet, Inc. for shareholders. Under the proposed acquisition agreement, Pinnacle Data shareholders will only receive $2.40 in cash for each share of Pinnacle Data/PNS stock owned, which represents a premium of only $.05 above the high closing price of PNS stock within the 120-day period preceding the announcement.
If you are an affected investor, and you want to learn more about the lawsuit or join the action, contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at patrick@powerstaylor.com, or Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 706-9314, or via email at WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to you.
The definitive acquisition agreement involves an all cash transaction valued at approximately $22 million. The transaction is expected to close in early 2012.
The investigation centers on whether Pinnacle Data shareholders are receiving adequate compensation for their shares in the buyout, whether the transaction undervalues Pinnacle Data stock, and whether Pinnacle Data's board attempted to obtain the highest share price for all shareholders prior to agreeing to the deal. According to shareholder rights attorney Willie Briscoe, "particularly troubling is the fact that Pinnacle Data shares closed at $2.35 per share as recently as July 26, 2011. The acquisition price represents a premium of only 2% over this value." In addition, Pinnacle Data recently released positive financial results for the company, including reporting seven sequential quarters of profitability. "Based on these and other factors, we believe that the transaction may significantly undervalue Pinnacle Data/PNS stock. Our lawsuit will seek to obtain the highest share price for all shareholders," said Briscoe.
The Briscoe Law Firm, PLLC is a full service business litigation and shareholder rights advocacy firm with more than 20 years of experience in complex litigation and transactional matters.
Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.
SOURCE Powers Taylor, LLP
Source: PR Newswire (November 11, 2011 - 1:28 PM EST)
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