SOURCE: Shareholders Foundation, Inc.

Shareholders Foundation, Inc.

December 29, 2009 09:32 ET

Shareholders Foundation Announces Investor Lawsuit Against Airvana, Inc. Board of Directors

SAN DIEGO, CA--(Marketwire - December 29, 2009) - The Shareholders Foundation, Inc. announces that a lawsuit has been filed in Delaware Chancery Court on behalf of current investors in Airvana, Inc., who purchased their AIRV shares before December 18, 2009, over alleged breach of fiduciary duty by the board of directors of Airvana, Inc.

On Friday Airvana, Inc. announced that it has entered into a definitive agreement with 72 Mobile Holdings, LLC, owned by affiliates of S.A.C. Private Capital Group, LLC, GSO Capital Partners LP, Sankaty Advisors LLC and ZelnickMedia, in a transaction valued at approximately $530 million. Under the terms of the agreement, at closing, each share of Airvana common stock will be exchanged for $7.65 cash. According to Airvana the boards of directors of both companies approved the agreement and the offer represents a 23 percent premium to AIRV stockholders.

According to the complaint the plaintiff alleges that the board of Airvana failed to ensure that the shareholders will receive maximum value for their shares and that the board of directors failed to conduct an appropriate sale process.

Shares of Airvana, Inc (AIRV) traded at $7.58 per share after the announcement and at $6.20 per share the day before the announcement.

But the plaintiff alleges that the proposed transaction is one-sided because it contains a "no solicitation" provision, a $15million termination fee provision, will only benefit the insiders, but not the Airvana shareholders, and the true value of Airvana's stock is much greater than the consideration offered in the proposed transaction.

Those who currently are investors in shares of Airvana, Inc. and purchased their shares before Dec. 18, 2009, should contact the Shareholders Foundation, Inc. by e-mail at or call +1 (858) 779-1554.

The Shareholders Foundation, Inc. is an investor advocacy group which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The group offers help, support, and assistance for every shareholder, and investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

Contact Information

    Shareholders Foundation, Inc.
    Trevor Allen
    +1 (858) 779-1554
    3111 Camino Del Rio North
    Suite 423
    San Diego, CA 92108