Law firm focused on shareholder cases is investigating potential breach of fiduciary duty claims against Trulia, Inc.’s Board of Directors and seeking more money for shareholders.
July 28, 2014. Post originally appeared on californialegalmalpractice.net, o the sale of the Company to Zillow, Inc. (“Zillow”). On July 28, 2014, the two companies announced the signing of a definitive merger agreement pursuant to which Zillow will acquire Trulia in a merger valued at roughly $3.5 billion. As a result of the merger, Trulia shareholders are only anticipated to receive 0.444 shares of Zillow Class A common stock in exchange for each share of Trulia. Andrews & Springer’s investigation focuses on the insufficient consideration that Trulia shareholders are expected to receive. Following the merger, Trulia shareholders are expected to be substantially diluted, owning only 33% of the combined company. Additionally, the 0.444 fixed exchange ratio restricts the value that Trulia shareholders are expected to receive by exposing Trulia shareholders to the volatility of Zillow’s share price. Andrews & Springer is investigating whether Trulia directors are breaching their fiduciary duties by failing to adequately shop the company and maximize shareholder value. Andrews & Springer is also investigating the fairness of the sales process conducted by J.P. Morgan.