BOSTON, July 23, 2012 /PRNewswire/ -- Block & Leviton LLP, a Boston-based law firm representing investors nationwide, is investigating possible breaches of fiduciary duties by the Board of Directors of RailAmerica, Inc. ("RailAmerica" or the "Company") (NYSE: RA) concerning its announced merger with Genesee & Wyoming Inc. (NYSE: GWR).
Under the terms of the merger, Genesee & Wyoming Inc. will acquire RailAmerica for $27.50 per share in cash, which is a paltry premium of approximately 10% over the Company's share price on July 20, 2012, the last trading day before the merger was announced. The total transaction is valued at approximately $1.39 billion.
Block & Leviton's investigation seeks to determine, among other things, whether RailAmerica's Directors breached their fiduciary duties by failing to maximize shareholder value in the proposed merger with Genesee & Wyoming. For example, since January 2012, RailAmerica's stock price has been rising steadily, up approximately 40% for the year alone. Moreover, the Company was poised to continue this success. As noted by RailAmerica's CEO John Giles on April 25, 2012: "[the Company's] positive momentum continues to build as reflected in our record first quarter revenue and operating income."
If you have any information relevant to this investigation, or have questions about your legal rights, please contact Jason M. Leviton, Esq. of Block & Leviton LLP at (617) 398-5620 or email him at Jason@blockesq.com.
Block & Leviton is a Boston-based law firm representing investors for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 50 years.
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Contact:
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BLOCK & LEVITON LLP
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Jason M. Leviton, Esq.
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(617) 398-5620
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Jason@blockesq.com
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SOURCE Block & Leviton LLP