Current shareholders of Rural/Metro who purchased shares before March 28, 2011 may have potential claims against the board of directors of Rural/Metro Corporation (NASDAQ: RURL) concerning possible breaches of fiduciary duty and other violations of law related to the Company’s agreement to be taken private by Warburg Pincus in a transaction valued at approximately $438.2 million.
Under the proposed agreement, Rural/Metro shareholders will receive $17.25 in cash for each share of Rural/Metro common stock they own.
Rural/Metro Failed to Adequately Shop the Company
These potential claims concern whether Rural/Metro’s board of directors failed to adequately shop the Company and obtain the best price possible for Rural/Metro’s shareholders before entering into the agreement with Warburg Pincus.
As recent as February 9, 2011, the Rural/Metro announced its fiscal second quarter 2011 financial results wherein Company President and CEO, Michael P. DiMino, commented: “Second-quarter activities reflect the continued strength of our growth initiatives and retention strategies as we effectively compete for market share. Our successes included a significant 911 contract win in Santa Clara County, California; the retention of key 911 and non-emergency contracts in central Florida; the acquisition of a new ambulance service in Colorado; and entry into new general transport markets.”
Guiliano Law Firm
The practice of Nicholas J. Guiliano, Esq., and The Guiliano Law Firm, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost to unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.