Block & Leviton LLP Investigates MOD-PAC CORP. for Possible Breaches of Fiduciary Duty in Connection With Its Proposed Going Private Transaction
BOSTON, Oct. 29, 2012 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, has commenced an investigation into possible breaches of fiduciary duties by the Board of Directors of MOD-PAC CORP. ("MOD-PAC" or the "Company") (NASDAQ: MPAC) with regards to the recently proposed going private offer by its President and Chief Executive Officer Daniel G. Keane and Chairman of the Board Kevin T. Keane (together the "Buying Group").
Under the terms of the proposal, MOD-PAC shareholders would receive $7.20 in cash per MOD-PAC share held at the time of the transaction. This acquisition offer was purposely timed to take advantage of a temporary drop in the share price of MOD-PAC. As recently as April 17, 2012, MOD-PAC traded at the current price of the proposed transaction. The stock has already begun to recover after a market over-reaction to first quarter 2012 results caused a temporary drop in share price. Indeed, since September 20, 2012, MOD-PAC stock has surged nearly 25%, prompting the Buying Group's attempt to acquire the Company at a discount price. Block & Leviton's investigation seeks to determine, among other things, whether MOD-PAC's Directors' acceptance of the offer will represent a breach of their fiduciary duties by failing to maximize shareholder value in the going private transaction and the process by which the MOD-PAC Directors ultimately have considered and approved the transaction.
If you are a MOD-PAC shareholder and have questions about your legal rights, or if you have information relevant to this investigation, please contact attorney Steven P. Harte at
(617) 398-5600 or email him at Steven@blockesq.com.
Block & Leviton is a Boston-based law firm representing investors nationwide for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 50 years. This notice may constitute attorney advertising.
BLOCK & LEVITON LLP
Steven P. Harte, Esq.
SOURCE Block & Leviton LLP