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Shareholder Class Action Filed Against the Board of 99 Cents Only Stores

New York, NY: A securities class action has been filed in Superior Court of the State of California for the County of Los Angeles on behalf of the shareholders of 99 Cents Only Stores ("NDN" or the "Company") in connection with the proposed acquisition by affiliates of Ares Management LLC and Canada Pension Plan Investment Board for merely $22.00 per share.

The class action alleges, among other things, that the proposed acquisition provides unfair and inadequate consideration to public NDN shareholders and that, in pursuing the deal, the Company's directors breached their fiduciary duties to NDN shareholders. Indeed, at least one analyst set a high price target of $24.50 per share.

Whereas, upon closing of the transaction, NDN shareholders will be precluded from sharing in any favorable long-term prospects of the Company, the deal safeguards the continued roles and interests of the Gold-Schiffer family. Specifically, it is expected that Eric Schiffer (CEO), Jeff Gold (President and COO), and Howard Gold (EVP) will continue in their current leadership roles and serve as directors, and founder David Gold will serve as Chairman Emeritus. Members of the Gold-Schiffer family, which own about 33% of the stock and have agreed to vote in support of the transaction, will continue to hold a significant minority ownership stake.

99 Cents Only Stores Securities Class Action Legal Help

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Last updated on Oct-13-11