SHAREHOLDER ALERT: Brower Piven Announces Class Action Lawsuit in Connection
With Claims of Breaches of Fiduciary Duty by the Board of Directors of
Hastings Entertainment, Inc. in Connection With the Sale of the Company to
Draw Another Circle, LLC and Hendrix Acquisition Corp. -- HAST
STEVENSON, Md., April 2, 2014 (GLOBE NEWSWIRE) -- The securities litigation
firm of Brower Piven, A Professional Corporation, announces that a class
action lawsuit has been commenced in the United States District Court for the
Northern District of Texas on behalf of all common stockholders of Hastings
Entertainment, Inc. ("Hastings" or the "Company") (Nasdaq:HAST) asserting
claims that the members of the Company's board of directors have breached
fiduciary duties they owe to Hastings shareholders.
Hastings recently announced that it has entered into a definitive merger
agreement to be acquired by Draw Another Circle, LLC and Hendrix Acquisition
Corp., companies owned directly or indirectly by Joel Weinshanker. Mr.
Weinshanker is the sole shareholder of National Entertainment Collectibles
Association, Inc., which holds approximately 12% of Hastings' outstanding
shares. Furthermore, it was announced that Mr. John H. Marmaduke, Hastings'
Chairman and CEO, has agreed to tender his shares resulting in a combined 44%
of the Company's outstanding shares committed to vote for the merger.
The claims asserted in the lawsuit concern whether the Company's board of
directors breached fiduciary duties by failing to maximize shareholder value
before agreeing to recommend that Hastings shareholders accept $3.00 for each
share of Hastings stock they own this transaction, and whether Mr. Weinshanker
is taking advantage of his position to purchase the Company at an unfair
price. According to the complaint, Hastings has a reported book value of $7.57
per share for the most recent quarter, and at least one analyst set a price
target of $5.00 for Hastings shares.
If you currently own common stock of Hastings and would like to learn more
about this lawsuit and your ability to participate as a plaintiff, without
cost or obligation to you, click here:
You may also request more information by contacting Brower Piven either by
email at email@example.com or by telephone at (410) 415-6616. Attorneys
at Brower Piven together have more than a century of experience litigating
securities and other class action cases.
CONTACT: Brower Piven, A Professional Corporation,
1925 Old Valley Road, Stevenson, Maryland,
Charles J. Piven, 410-415-6616,
Press spacebar to pause and continue. Press esc to stop.