SOURCE: Brower Piven, A Professional Corporation

October 15, 2010 14:11 ET

Brower Piven Announces Class Action Lawsuit in Connection With the Acquisition of Polymer Group, Inc. by Blackstone Group LP

STEVENSON, MD--(Marketwire - October 15, 2010) -  Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the North Carolina Superior Court, Mecklenburg County on behalf of all minority shareholders of Polymer Group, Inc. ("PGI" or the "Company") (OTCBB: POLGA) (OTCBB: POLGB).

The claims asserted in the complaint arise from the proposed buyout (the "Acquisition") of PGI by Blackstone Group LP ("Blackstone"). On October 4, 2010, PGI announced that it had entered into a definitive agreement (the "Agreement") to be acquired by Blackstone. According to the complaint, pursuant to the terms of the Agreement, PGI shareholders will receive between $15.25 and $18.16 in cash per PGI share that they own, depending on the outcome of a tax liability matter that PGI is currently facing. The complaint alleges that this price range is clearly inadequate and substantially undervalues PGI. Indeed, the Company's stock traded at $23.99 per share as early as September 29, 2010 -- only six days prior to the announcement of the Acquisition. According to the complaint, the Acquisition is expected to close prior to the end of first quarter of 2011.

The complaint alleges that the Acquisition is the product of a fundamentally flawed process that is designed to ensure the Acquisition of PGI by Blackstone on terms preferential to Blackstone, but detrimental to plaintiff and the other minority shareholders of PGI. According to the complaint, Blackstone is not only a potential Acquirer of PGI, but actually participated in the Company's valuation process, serving as PGI's financial advisor for the Acquisition. The complaint alleges that Blackstone stands on both sides of the transaction, privy to non-public information concerning the financial condition and prospects of PGI, including the true value and expected increased future value of PGI and its assets. The complaint asserts that this information is not available to PGI's public shareholders.

If you are a current owner of shares of Polymer Group, Inc., you may obtain additional information about this lawsuit by contacting Brower Piven at www.browerpiven.com, by email at piven@browerpiven.com, by calling 410/415-6701, 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 40 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 J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6701
    Email Contact