MILWAUKEE, March 7, 2013 (GLOBE NEWSWIRE) -- We are investigating the Board of Directors of Hot Topic, Inc. for possible breaches of fiduciary duty and other violations of state law in connection with the sale of Hot Topic to Sycamore Partners.
Click here to learn how to join the action: http://www.ademilaw.com/case/hot-topics-inc or call Guri Ademi toll-free at 866-264-3995. There is no cost or obligation to you.
Hot Topic's long-term financial outlook is very positive and yet Hot Topic shareholders will receive only $14.00 when some analysts have put a price target on Hot Topic shares of $16.40. Sycamore is well aware of Hot Topic's improving financial metrics and is purchasing Hot Topic at a substantial discount. The merger agreement unreasonably limits prospective bids for Hot Topic by (i) prohibiting solicitation of any further bids, and (ii) imposing a termination penalty should Hot Topic receive and accept a superior bid. Hot Topic insiders, their affiliates and other majority shareholders own significant voting stock of Hot Topic, and will receive tens of millions of dollars as part of change of control arrangements, and therefore can unduly influence a sale of Hot Topic not necessarily in the best interests of non-insider shareholders. In light of these facts, our investigation centers on the conduct of Hot Topic'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 Hot Topic given its current financial condition and prospects.
If you own common stock in Hot Topic 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/hot-topics-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