The law firm of Brower Piven has commenced an investigation into possible breaches of fiduciary duty to current shareholders of The Pep Boys – Manny, Moe & Jack and other violations of state law by the board of directors of Pep Boys relating to the proposed acquisition of the company by The Gores Group.
The firm’s investigation seeks to determine, among other things, whether the board breached its fiduciary duties by failing to maximize shareholder value.
On 30 January 2012, Pep Boys announced that it had entered into a definitive merger agreement providing for Gores Group to acquire Pep Boys for $1bn. Under the terms of the merger agreement, Pep Boys shareholders will receive $15.00 for each share of Pep Boys common stock held. However, according to Yahoo! Finance, at least one analyst has set a high price target of $17.00 per share.
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