Cbeyond (NASDAQ:CBEY, Stock Forum), an Atlanta Georgia-based provider of managed information technology and communications services to American businesses, has yet another law firm on its tail. Levi & Korsinsky LLP are taking aim at the company in regards to its proposed sale to Birch Communications for allegedly not completing due diligence on the consideration that would see shareholders receive between $9.97 and $10.00 with said consideration possibly undervaluing the company.
Questcor Pharmaceuticals (NASDAQ:QCOR, Stock Forum), a New York-based biopharmaceutical firm engaged in the treatment of patients with serious, difficult-to-treat autoimmune & inflammatory diseases, walked straight into the cross hairs of Levi & Korsinsky LLP as it and a host of other law firms investigate alleged breaches of fiduciary duty and state law violations against the company's directors in regards to Questcor's acquisition by Mallinckrodt. The law firms are investigating whether the directors failed to adequately shop the company around and therefore undervalued it in this transaction.
FedFirst Financial (NASDAQCM:FFCO, Stock Forum), a Monessen Pennsylvania-based stock holding firm whose wholly-owned subsidiary, First Federal Bank, offers residential, multi-family and commercial mortgages and deposit products, was put under the microscope by three law firms since the start of the week. Ryan & Maniskas LLP, Brower Piven and Levi & Korsinsky LLP join a slew of law firms investigating possible breaches of fiduciary duty and state law violations by the company's board in regards to FedFirst's buyout by CB Financial Services. The investigation intends to determine whether the directors failed to maximize share value before entering into and recommending the transaction.
Allergan (NYSE:AGN, Stock Forum), a New Orleans-based multi-specialty health care company engaged in the development and commercialization of pharmaceuticals, biologics and medical devices, has got the stink eye from two law firms in the last two days as Brower Piven and Kahn Swick & Foti LLC investigate the unsolicited takeover proposal by Valeant Pharmaceuticals (TSX:VRX, Stock Forum). The two law firms are investigating whether the company's directors failed to maximize shareholder value and left the company in an undervalued position in Valeant's proposal.
In short, it's been a week of lawyers chasing corporate ambulances before they even arrive at the hospital for proper diagnosis.
A WORD TO THE WISE
Still thinking about getting into bitcoins and the collection of other virtual currencies even after the recent spate of cyber-theft, government crackdowns on digital currency exchanges and direct links to money laundering?
Well, you'll be interested to know that the United States Internal Revenue Service, known infamously as the IRS, caught up with the trend by releasing a notice at the end of March on how the IRS will apply tax principles to virtual currency transactions.
Basically, Bitcoins and other virtual currencies will be considered as property instead of a foreign currency. Therefore investors in virtual currencies will be happy that they may experience a lower capital gains tax in regards to their investment. However, miners of these digital coins may not be so happy as mining virtual currencies will be a taxable event.
Virtual currency traded in Exchanges will most likely be treated as non-capital assets, however there has been no determination whether brokers of virtual currencies will be subject to information reporting in the same manner as those who trade in securities and commodities.
Also any disposition of virtual currencies will be considered a taxable event as well as anyone, employee or independent contractor, paid in virtual currencies will be taxed in the same manner as if the amounts paid were in US dollars.
I'm still not buying into the bitcoin market.