SAN DIEGO, May 21, 2023 (GLOBE NEWSWIRE) —
Stockholder rights law firm Johnson Fistel, LLP has launched an investigation into whether the board members of Franchise Group, Inc. (Nasdaq: FRG) (“Franchise Group” or the “Company”) breached their fiduciary duties in connection with the proposed sale of the Company to members of the senior management team of Franchise Group led by Brian Kahn, the Company’s Chief Executive Officer, (collectively with affiliates and related parties of the senior management team, the “Management Group”), in financial partnership with a consortium that includes B. Riley Financial, Inc. and Irradiant Partners.
If you are a stockholder of Franchise Group and believe the proposed buyout price is too low or you’re interested in learning more about the investigation, please contact lead analyst Jim Baker ([email protected]) at 619-814-4471. If emailing, please include a phone number.
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There is no cost or obligation to you.
On May 10, 2023, Franchise Group announced that it has entered into a definitive agreement to be acquired by the Management Group led by CEO Brian Kahn. Franchise Group’s public stockholders, other than the Management Group, would receive $30.00 per share in cash.
The investigation concerns whether the Franchise Group board failed to satisfy its fiduciary duties to the Company’s stockholders.
First, the investigation includes determining whether the board obtained the best price possible for Franchise Group shares of common stock.
Second, Johnson Fistel is investigating whether the proposed deal represents adequate consideration given the conflict of interests arising from management’s involvement in pursuing the buyout with a financing source. Management buyouts raise significant concerns regarding conflicts of interest as executives, acting as both buyers and sellers, may prioritize personal financial gains over maximizing stockholder value.
Finally, the investigation concerns whether the Franchise Group board adequately pursued alternatives to the proposed acquisition.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized stockholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in stockholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit https://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
[email protected]
