NEW ORLEANS (Legal Newsline) -- Former Louisiana Attorney General Charles Foti Jr. and his law firm, Kahn Swick & Foti LLC, announced Friday that they have launched an investigation into the board of directors of popular apparel retailer rue21 Inc.
Foti made the announcement just hours after rue21 said it was entering into a definitive agreement to be acquired by funds advised by Apax Partners, a global private equity firm.
Under the agreement, funds advised by Apax will acquire all outstanding shares of rue21 for $42 per share in cash. The transaction is valued at more than $1 billion, according to a rue21 news release.
Foti, who served as Louisiana's top lawyer from 2004-08, said rue21's board is being investigated in connection with their conduct related to the sale.
Specifically, the law firm's investigation is focusing on whether the company and/or its officers and directors secured sufficient value for the shareholders of the company, violated their fiduciary duties, and/or violated state or federal securities laws.
According to its release, rue21 said its board approved the agreement based on the unanimous recommendation of a special committee, comprised of three independent directors.
Foti, now a partner at KSF, was replaced by current Attorney General James "Buddy" Caldwell.
From Legal Newsline: Reach Jessica Karmasek by email at firstname.lastname@example.org.