updated 10/18/2010 9:46:07 AM ET 2010-10-18T13:46:07

SAN DIEGO, Oct. 18, 2010 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that an investor in Polymer Group, Inc. (OTCBB:POLGA) filed a lawsuit in State Court against directors of Polymer Group and also Blackstone alleging breaches of fiduciary duties arising out of the attempt to sell Polymer Group too cheaply via an unfair process to an affiliate of Blackstone Capital Partners V L.P

Those who currently are long term investors in Polymer Group, Inc. (OTCBB:POLGA) and purchased their shares prior to August 12 2010, should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.

On Tuesday, October 05, 2010, Polymer Group, Inc. (OTCBB:POLGA) (OTCBB:POLGB) announced it has entered into an agreement to be acquired by an affiliate of Blackstone Capital Partners V L.P. As a result of the transaction, each holder of outstanding shares of Polymer Group, Inc. (OTCBB:POLGA) common stock will be entitled to receive between $15.25 and $18.16 in cash for each share depending on potential tax liabilities, costs and expenses.

The plaintiff claims the offered price is inadequate and substantially undervalues Polymer Group, Inc.

Shares of Polymer Group Inc. traded at $20 per share on April 09, 2010 and on April 23, 2010 after Polymer Group announced its Board of Directors is evaluating strategic alternatives. Then after media reports surfaced in August announcing that private-equity firm Blackstone Group LP is in exclusive, early-stage talks to buy Polymer Group Inc. its shares (POLGA) closed 4% higher, or at $21.75 per share, valuing Polymer at about $467 million. POLGA shares continued to increase in value to as high as $23.99 per share on September 29, 2010, before losing almost 35% in response to the takeover news on October 04, 2010.

The plaintiff also alleges that the proposed acquisition is the product of a fundamentally flawed process that is designed to ensure the acquisition of Polymer Group Inc by Blackstone on terms preferential to Blackstone, but detrimental to the plaintiff and the other minority shareholders of Polymer Group. The plaintiff claims that Blackstone stands on both sides of the transaction, because Blackstone is not only a potential acquirer of Polymer Group, but actually also participated in its valuations process, serving as Polymer Group's financial advisor for the acquisition.

Those who currently are investors Polymer Group, Inc. (OTCBB:POLGA) and purchased their shares before the announcement, should contact the Shareholders Foundation, Inc.

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 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

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

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