Shareholder rights law firm Johnson & Weaver, LLP has launched an
investigation into whether the board members of Metalico, Inc. (NYSE:
MEA) breached their fiduciary duties in connection with the proposed
sale of the Company to Total Merchant Limited.
Additional Information:
Metalico engages in scrap metal recycling business. The company collects
and processes ferrous and non-ferrous metals; and collects and processes
industrial and obsolete scrap metal into reusable forms, and supplies
recycled metals to consumers, including electric arc furnace mills,
integrated steel mills, foundries, secondary smelters, aluminum
recyclers, and metal brokers.
On June 16, 2015, Metalico announced it had signed a definitive merger
agreement with Total Merchant. Under the terms of the agreement, Total
Merchant will acquire all outstanding shares of Metalico for $0.60 per
share.
The investigation concerns whether Metalico’s board failed to satisfy
their duties to the Company shareholders, including whether the board
adequately pursued alternatives to the acquisition and whether the board
obtained the best price possible for Metalico’s shares of common stock. One
Wall Street analyst has a $1.00 price target on Metalico stock which is
more than the $.60 offer price. Last year the stock traded as high as
$1.67.
If you are a shareholder of Metalico and believe the proposed buyout
price is too low or you’re interested in learning more about the
investigation or your legal rights and remedies, please contact lead
analyst Jim Baker (jimb@johnsonandweaver.com)
at 619-814-4471. If emailing, please include a phone number where you
can be reached.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law
firm with offices in California, New York and Georgia. The firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits. For more information
about the firm and its attorneys, please visit http://www.johnsonandweaver.com.
Attorney advertising. Past results do not guarantee future outcomes.
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