MILWAUKEE, Feb. 20, 2013 (GLOBE NEWSWIRE) -- We are investigating the Board of Directors of Netspend Holdings, Inc. ("Netspend") for possible breaches of fiduciary duty and other violations of state law in connection with the sale of Netspend to Total System Services Inc. ("Total Systems").
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Netspend's long-term financial outlook is improving and yet Netspend shareholders will receive only $16.00 per share. Total Systems is well aware of Netspend's improving financial metrics and is purchasing Netspend at a substantial discount. The merger agreement unreasonably limits prospective bids for Netspend by (i) prohibiting solicitation of any further bids, and (ii) imposing a termination penalty should Netspend receive and accept a superior bid. Netspend insiders, their affiliates and other majority shareholders own significant voting stock of Netspend, and will receive tens of millions of dollars as part of change of control arrangements, and therefore can unduly influence a sale of Netspend not necessarily in the best interests of non-insider shareholders. In light of these facts, our investigation centers on the conduct of Netspend's Board of Directors, who have unanimously approved the transaction, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for Netspend given its current financial condition and prospects.
If you own common stock in Netspend and wish to obtain additional information, please contact Guri Ademi either at firstname.lastname@example.org or toll-free: 866-264-3995, http://www.ademilaw.com/case/netspend-holdings-inc.
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CONTACT: Ademi & O'Reilly, LLP Guri Ademi 3620 East Layton Ave. Cudahy, WI 53110 Toll Free: (866) 264-3995 Fax: (414) 482-8001 www.ademilaw.comSource:Ademi & O'Reilly, LLP