SOURCE: RCN Corporation

RCN Corporation

March 11, 2010 09:32 ET

Shareholders Foundation Announces Investor Lawsuit Against the RCN Corporation Board of Directors

SAN DIEGO, CA--(Marketwire - March 11, 2010) -  The Shareholders Foundation, Inc. announces that a lawsuit has been filed in Delaware State Court on behalf of current investors in RCN Corporation, who purchased their RCNI shares before March 05, 2010, over alleged breach of their fiduciary duties for selling itself too cheaply to ABRY Partners.

On March 05, 2010 RCN Corporation and ABRY Partners announced that they entered into an agreement for an investment fund managed by ABRY Partners to acquire RCN Corp. for total consideration of approximately $1.2 billion, including the assumption of debt. Under the proposed agreement each share of RCN common stock issued and outstanding immediately prior to the effective time of the merger will be entitled to receive $15 in cash. According to RCN Corporation the offer represents a 43% premium over RCN Corp.'s average closing share price during the past 30 trading days and a 22% premium over the closing share price on March 4, 2010.

But shares of RCN Corporation traded after the announcement over $15.30 per share, and were down from over $30 in 2007.

According to the complaint the plaintiff alleges, among other things, that the offer "undervalues" RCN Corporation, and the "proposed transaction contains various deal protections that could preclude the emergence of a competing acquisition offer."

Those who currently are investors in shares of RCN Corporation and purchased their RCNI shares before March 05, 2010, should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com 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

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