NEW YORK, Feb. 11, 2016 /PRNewswire/ -- The proposed acquisition of LeapFrog Inc. ("LeapFrog" or the "Company") by VTech Holdings Ltd. ("VTech") is being investigated by WeissLaw LLP for possible breaches of fiduciary duty and other violations of law by the Board of Directors of LeapFrog. On February 5, 2016, the Company announced it had reached a definitive agreement for VTech to acquire all outstanding shares of LeapFrog in a transaction valued at approximately $72 million. Under the terms of the agreement, LeapFrog shareholders will receive $1.00 in cash for each share they own.
WeissLaw is investigating whether LeapFrog's Board acted to maximize shareholder value prior to entering into the agreement. Notably, the Company's shares traded for $1.15 as recently as October of 2015. Additionally, at least one analyst set a target price of $3.50 per share, or three and a half times the offer price.
Given these facts, WeissLaw is investigating the LeapFrog Board of Directors' decision to sell LeapFrog and whether LeapFrog shareholders will obtain their fair proportionate share of the Company's continued success and future growth prospects. If you own LeapFrog shares and would like more information about your rights or our investigation, please contact Joshua Rubin either by telephone at (888) 593-4771 or by email at stockinfo@weisslawllp.com.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at stockinfo@weisslawllp.com or fill out the form on our website, http://www.weisslawllp.com/contact/report_fraud/.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/the-acquisition-of-leapfrog-enterprises-inc-may-not-be-in-the-best-interests-of-lf-shareholders-300219012.html
SOURCE WeissLaw LLP
