SOURCE: Brower Piven, A Professional Corporation

March 29, 2011 17:30 ET

Brower Piven Announces Class Action Lawsuit in Connection With the Acquisition of drugstore.com inc. by Walgreen Company

STEVENSON, MD--(Marketwire - March 29, 2011) -  The law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the Delaware Chancery Court on behalf of all shareholders of drugstore.com ("drugstore.com") (NASDAQ: DSCM).

The complaint alleges violations of state law by the Board of Directors of drugstore.com relating to the proposed acquisition of the company by Walgreen Company ("Walgreens") (NYSE: WAG). The complaint alleges that drugstore.com's Board of Directors breached their fiduciary duties by failing to maximize shareholder value, among other things.

On March 24, 2011, the complaint states, drugstore.com announced that they entered into a definitive agreement for drugstore.com to be acquired by Walgreens in a transaction valued at approximately $409 million. The complaint states that pursuant to the merger agreement, drugstore.com stockholders will receive $3.80 in cash for each share of stock. The complaint alleges that while the company announced that the $3.80 in cash for each share of stock is a premium of approximately 102 percent over drugstore.com's 30-day average closing stock price, and a premium of approximately 113 percent over the closing price of drugstore.com's common stock on the last trading day prior to today's announcement, the proposed transaction price actually represents a small premium to the company's summer stock high of $3.34 per share and a discount to prior trading prices in the last year. The complaint further alleges that the Board of drugstore.com failed to reject the proposed acquisition, which was motivated by a self-interested desire to ensure their continued positions within the company and/or secure benefits for themselves, while depriving the company's public shareholders of the true value that an action or liquidation would provide.

If you are a current owner of shares of drugstore.com, you may obtain additional information about this lawsuit by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 60 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact