Several law firms have “commenced an investigation” into LKQ Corp.’s proposed buyout of RV distributor Coast Distribution Systems Inc., including Brower Piven.
In a press release directed at Coast stockholders, the Maryland-based firm stated that it is looking into possible breaches of fiduciary duty and other violations of state law by Coast’s board.
Under the terms of the transaction, Coast Distribution shareholders are anticipated to receive $5.50 in cash for each share of common stock held. The firm’s investigation seeks to “determine, among other things, whether the company’s board failed to satisfy their duties to shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for the company’s shares of common stock.”
Other law firms involved in similar actions include Rigrodsky & Long, Levi & Korinsky and Stull, Stull & Brody.