NEW YORK, June 29, 2016 /PRNewswire/ -- WeissLaw LLP is
investigating possible breaches of fiduciary duty and other
violations of law by the Board of Directors of ReachLocal, Inc.
("RLOC" or the "Company") in connection with the proposed
acquisition of the Company by Gannett Co., Inc. ("Gannett").
On June 27, 2016, the Company
announced it had reached a definitive agreement for Gannett to
acquire all outstanding shares of RLOC. Under the terms of
the agreement, RLOC shareholders will receive $4.60 in cash for each RLOC share they
own.
WeissLaw is investigating whether RLOC's Board acted to maximize
shareholder value prior to entering into the agreement.
Notably, the Company recently reported positive financial
results. It announced on May 3,
2016, its "fourth consecutive quarter of positive Adjusted
EBITDA," with $3.4 million in
Adjusted EBITDA in the first quarter of 2016. Additionally,
according to Gannett's president and chief executive officer,
Robert Dickey, "[t]he acquisition of
ReachLocal [will accelerate] Gannett's digital growth strategy,
adding more than $320 million of
annual digital revenue."
Given these facts, WeissLaw is investigating whether RLOC's
Board acted in the best interests of RLOC's public shareholders to
maximize shareholder value prior to entering into the
agreement. If you own RLOC shares and would like more
information about your rights or our investigation, or if you have
information to share with us, please contact Joshua Rubin by telephone at
(888) 593-4771 or by email at
stockinfo@weisslawllp.com.
WeissLaw LLP has litigated hundreds of stockholder class and
derivative actions for violations of corporate and fiduciary
duties. We have recovered over a billion dollars for
defrauded clients and obtained important corporate governance
relief in many of these cases. If you have information or
would like legal advice concerning possible corporate wrongdoing
(including insider trading, waste of corporate assets, accounting
fraud, or materially misleading information), consumer fraud
(including false advertising, defective products, or other
deceptive business practices), or anti-trust violations, please
email us at stockinfo@weisslawllp.com or fill out the form
on our website,
http://www.weisslawllp.com/contact/report_fraud/.
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SOURCE WeissLaw LLP