SAN DIEGO, Sept. 2, 2010 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit has been filed in State Court on behalf of current investors in Wesco Financial Corporation (AMEX:WSC), who purchased COGT shares before August 25, 2010, over alleged breaches of fiduciary duty by certain members of the Cogent board of directors.
Those who currently are investors in shares of Wesco Financial Corporation (AMEX:WSC) and purchased their shares before August 25, 2010, should contact the Shareholders Foundation, Inc. by e-mail at email@example.com or call +1 (858) 779-1554.
On August 25, 2010, Berkshire Hathaway's management determined to propose to Wesco a cash-stock election transaction in which it would acquire the remaining 19.9% of the shares of Wesco that it does not presently own in exchange for Berkshire Hathaway Class B shares and/or cash valued at the book value per share of Wesco as of a time reasonably contemporaneous with the closing of such a transaction. The transaction would be valued at about USD 460 million, based on Wesco's closing stock price of USD 324.75 on Wednesday. Warren Buffett's Berkshire Hathaway Inc. holds with 5.7 million shares roughly 80% of Wesco Financial Corporation shares through Blue Chip Stamps, which is a wholly owned subsidiary of OBH LLC, which is a wholly owned subsidiary of Berkshire Hathaway Inc.
Shares of Wesco Financial Corporation (AMEX:WSC) traded on August 26, 2010 at roughly $325 per share and jumped in response to the offer to over $380 per share, or an increase of 17%.
According to the complaint the plaintiff alleges that the defendants breached their fiduciary duty in connection with the attempt to sell the remaining 20 percent Wesco Financial to Berkshire Hathaway at an unfair price through an unfair process. Shares of Wesco Financial Corporation (AMEX:WSC) traded over $400 per share as early as March 2010, and traded during April at over $390 per share and in May 2010 as high as $386 per share. During 2008 WSC shares reached $440 per share, and almost $500 during 2007. In addition Wesco Financials revenue increased over the past four years by 34%.
Those who currently are investors in Wesco Financial Corporation (AMEX:WSC) 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 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.
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CONTACT: Shareholders Foundation, Inc. Trevor Allen +1 (858) 779-1554 3111 Camino Del Rio North Suite 423 San Diego, CA 92108