Levi & Korsinsky is investigating the Board of Directors of RAE Systems, Inc. (AMEX: RAE) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Battery Ventures.
New York, NY, September 29, 2010 — Levi & Korsinsky is investigating the Board of Directors of RAE Systems, Inc. (AMEX: RAE) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Battery Ventures. Under the terms of the transaction, RAE shareholders will receive $1.60 in cash for each share of RAE common stock they own for a total transaction value of approximately $95 million.
The investigation concerns whether the RAE Board of Directors breached their fiduciary duties to RAE stockholders by failing to adequately shop the Company before entering into this transaction and whether Battery Ventures is underpaying for RAE shares, thus unlawfully harming RAE stockholders. Our investigation concerns whether the Board took into account RAE’s improving financial health when agreeing to sell the Company for $1.60 per share. Notably, RAE reported strong revenues of $23.3 million for the second quarter 2010, above consensus of $20.1 million, and earnings per share of $0.03 versus consensus of $0.01 per share for the quarter. RAE also reported $2 million profit, or $0.04 per share for the second quarter 2010, compared to a loss of $2.3 million or $0.03 per share in the same period last year.
If you own common stock in RAE and wish to obtain additional information, please contact Joseph E. Levi, Esq. either via email at [email protected] or by telephone at (212) 363-7500 or visit http://www.zlk.com/raesystems-rae.html.
Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation. The attorneys at Levi & Korsinsky have been appointed by numerous courts throughout the country to serve as lead counsel on behalf of shareholders in major litigations involving mergers and acquisitions. For more information, please feel free to contact any of the attorneys listed below.
Contact: Levi & Korsinsky, LLP, Joseph Levi, Esq., Eduard Korsinsky, Esq., 30 Broad Street – 15th Floor, New York, NY 10004, Tel: (212) 363-7500, Fax: (212) 363-7171, www.zlk.com
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Contact:
Jared Morine
Levi & Korsinsky, LLP
30 Broad Street, 15th Floor
New York, NY 10004
212-363-7500
[email protected]
