BALA CYNWYD, Pa., June 4, 2012 /PRNewswire/ -- Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of Credo Petroleum Corporation ("Credo" or the "Company") (Nasdaq: CRED) relating to the proposed acquisition by Forestar Group. ("Forestar").
Under the terms of the transaction, Credo shareholders would receive only $14.50 in cash for each share of Credo stock they own. The investigation concerns possible breaches of fiduciary duty and other violations of state law by the Board of Directors of Credo for not acting in the Company's shareholders' best interests in connection with the sale process to Forestar.
Credo has reported strong operating results for the first quarter of the fiscal year of 2012. The Company reported a 79.1% increase in revenue for the first quarter of fiscal year 2012 compared to revenue during the same quarter of the previous year. Additionally, net income rose 469.2% for the first quarter of 2012 compared to net income in the first quarter of 2011. As a result, the investigation focuses on the decision to agree to this transaction at $14.50 a share given that the stock traded at $14.75 a share on March 8, 2011.
If you own shares of Credo stock and wish to discuss the legal ramifications of the proposed transaction, or have any questions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact Jason L. Brodsky, Esquire or Evan J. Smith, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by e-mail at firstname.lastname@example.org visiting http://brodsky-smith.com/433-cred-credo-petroleum-corporation.html, or by calling toll free 877-LEGAL-90.
SOURCE Brodsky & Smith, LLC