Shareholders Foundation Announces Lawsuit Against Airvana, Inc. Board of Directors
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SAN DIEGO, Dec. 23, 2009 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit has been filed in Delaware Chancery Court on behalf of current investors in Airvana, Inc. (Nasdaq:AIRV), who purchased their AIRV shares before December 18, 2009, over alleged breach of fiduciary duty by the board of directors of Airvana, Inc. On Friday, Airvana, Inc. announced that it has entered into a definitive agreement with 72 Mobile Holdings, LLC, owned by affiliates of S.A.C. Private Capital Group, LLC, GSO Capital Partners LP, Sankaty Advisors LLC and ZelnickMedia, in a transaction valued at approximately $530 million. Under the terms of the agreement, at closing, each share of Airvana common stock will be exchanged for $7.65 cash. According to Airvana, the boards of directors of both companies approved the agreement and the offer represents a 23 percent premium to AIRV stockholders. According to the complaint, the plaintiff alleges that the board of directors of Airvana failed to ensure that the shareholders will receive maximum value for their shares and that the board of directors failed to conduct an appropriate sale process. Shares of Airvana, Inc. (AIRV) traded at $7.57 per share after the announcement and at $6.20 per share the day before the announcement. But the plaintiff alleges that the proposed transaction is one-sided because it contains a "no solicitation" provision, a $15 million termination fee provision, will only benefit the insiders, but not the Airvana shareholders, and the true value of Airvana's stock is much greater than the consideration offered in the proposed transaction. The plaintiff claims the offer should be higher because the company introduced recently new updated products, like the HubBub Connected Home Femtocell (a new model of the HubBub CDMA Femtocell), and the financial results are promising, including outstanding invoices of about $36.4 million and a recent payment of $39.6 million payment from Nortel. Those who currently are investors in shares of Airvana, Inc. and purchased their shares before Dec. 18, 2009, should contact the Shareholders Foundation, Inc. by e-mail at email@example.com or call +1 (858) 779-1554. The Shareholders Foundation, Inc. is an investor advocacy group which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The group offers help, support and assistance for every shareholder, and investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon. The Shareholders Foundation, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6931 -0- CONTACT: Shareholders Foundation, Inc. Trevor Allen +1 (858) 779-1554 3111 Camino Del Rio North Suite 423 San Diego, CA 92108