SOURCE: Milberg LLP

March 18, 2011 11:14 ET

Milberg LLP Announces the Filing of a Shareholder Class Action to Stop 99 Cents Only Stores Buyout

NEW YORK, NY--(Marketwire - March 18, 2011) - The law firm of Milberg LLP announces that a case was filed in Superior Court of the State of California for the County of Los Angeles, challenging actions taken by the board of directors of 99 Cents Only Stores ("99 Cents Only") under state law. This case was not filed by Milberg LLP.

The action alleges that the board of directors of 99 Cents Only (NYSE: NDN) breached their fiduciary duties to shareholders by agreeing to a $1.3 billion buyout of 99 Cents Only led by members of the Schiffer-Gold family, which own 33% of all outstanding shares, and Leonard Green & Partners LP. Under the current proposal, 99 Cents Only shareholders will receive $19.09 in cash for each share of 99 Cents Only common stock they currently hold.

Shareholders are questioning the value of the going private deal because 99 Cents Only's common stock traded as high as $18.88 per share in September 2010. Additionally, at least one analyst has set a target price of $23.50 per share for 99 Cents Only stock and on February 2, 2011, 99 Cents Only reported strong third quarter 2011 results of $365.36 million, beating analysts' expectations.

Founded in 1965, Milberg has offices in New York, Los Angeles, Tampa, and Detroit. The Firm has litigated landmark cases and recovered billions for shareholders and consumers. Our website has additional information: (www.milberg.com).

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Contact Information

  • Andrei V. Rado, Esq.
    Milberg LLP
    One Pennsylvania Plaza, 49th Fl.
    New York, NY 10119-0165
    Phone number: (800) 320-5081
    Email: contactus@milberg.com

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