Federman & Sherwood Investigates Zipcar, Inc. for Possible Breaches of Fiduciary Duty

Federman & Sherwood Investigates Zipcar, Inc. for Possible Breaches of Fiduciary Duty

OKLAHOMA CITY--(BUSINESS WIRE)-- The law firm of Federman & Sherwood has initiated an investigation into Zipcar, Inc. (NAS: ZIP) ("Zipcar") with respect to possible breaches of fiduciary duty by the company's officers and directors, as well as violations of state law, in connection with the take-over bid offer by Avis Budget Group Inc. (NAS: CAR) ("AVIS").

On January 2, 2013, Zipcar announced that it had agreed to be acquired by AVIS, whereby AVIS would acquire all outstanding shares of Zipcar common stock in a cash offer of approximately $12.25 per Zipcar share, or approximately $491.2 million, which from all outward appearances, undervalues the company significantly since analysts have recently given Zipcar a target share price at $13.00 per share, and that the offer price does not offer a large premium to Zipcar shareholders.


Federman & Sherwood is investigating whether: (1) the information being provided to Zipcar shareholders makes all necessary disclosures with respect to the proposed sales transaction; (2) whether the proposed sale to AVIS offers adequate long-term value to Zipcar shareholders; and (3) whether Zipcar could have received a higher per share price for its shareholders had the officers and directors aggressively sought other purchasers for the company.

If you currently own common stock in Zipcar, Inc. and purchased your shares before January 2, 2013, have information to assist in our investigation of this transaction, or have any questions or concerns regarding this notice or preservation of your rights, please contact William B. Federman. Federman & Sherwood has extensive nationwide experience in representing investors in securities, derivative and merger-related shareholder class actions, and has been appointed as lead counsel in multiple complex cases.



FEDERMAN & SHERWOOD
William B. Federman, 405-235-1560
wbf@federmanlaw.com

KEYWORDS:   United States  North America  Oklahoma

INDUSTRY KEYWORDS:

The article Federman & Sherwood Investigates Zipcar, Inc. for Possible Breaches of Fiduciary Duty originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

Add a Comment

*0 / 3000 Character Maximum

1 Comment

Filter by:
Ken

6% does not constitute as a significantly undervalued offer. Give me a break...your going to file suit against a company because the majority owners want to sell and accepted the first offer. I own a lot of stock in ZipCar and yes, they were doing great and it would have been nice to see them grow, but I'm not running the company. I'm happy with my return.

February 07 2013 at 5:22 PM Report abuse rate up rate down Reply