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Answers Corporation Shareholder Investigation by Briscoe Law Firm Concerning Private Equity Acquisition by AFCV Holdings, LLC

^{Published on 2011-02-04 12:45:42 - Market Wire}
 

DALLAS--([ BUSINESS WIRE ])--[ The Briscoe Law Firm, PLLC ], founded by a former state prosecutor and enforcement attorney for the United States Securities and Exchange Commission, and the securities litigation law firm of [ Powers Taylor, LLP ] are investigating potential legal claims against the Board of Directors of Answers Corporation (aAnswers Corp.a or aANSWa) (NASDAQ: ANSW) related to the proposed buyout of Answers Corp. by AFCV Holdings, LLC, a portfolio company of the private equity firm Summit Partners. The definitive acquisition agreement, which was announced on February 3, 2011, involves a transaction valued at approximately $127 million. Under the proposed buyout, Answers Corp. shareholders will receive only $10.50 in cash each share of Answers Corp./ANSW common stock they hold.

"Based on prior share prices, and other factors, the firms believe that the acquisition price may not be fair for Answers Corp. shareholders, and we are investigating the merger to ensure that the shareholders obtain the maximum value for their shares in this private-equity buyout"

The investigation relates to the fairness of the proposed transaction to Answers Corp. shareholders, possible breaches of fiduciary duty and other violations of state law by the Board of Directors of Answers Corp. for approving this transaction, and whether Answers Corp.a™s Board of Directors acted in the shareholdersa™ best interests. In particular, the acquisition price is only an approximate 16% premium over Answers Corp.a™s closing price the day before the announcement, and the companya™s stock price has increased nearly 50% over the past few months.

aBased on prior share prices, and other factors, the firms believe that the acquisition price may not be fair for Answers Corp. shareholders, and we are investigating the merger to ensure that the shareholders obtain the maximum value for their shares in this private-equity buyout,a said shareholder rights attorney Willie Briscoe.

If you currently own shares of Answers Corp./ANSW and would like additional information regarding this investigation, or if you have information regarding the allegations involved in this transaction, please contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at [ patrick@powerstaylor.com ], or Willie Briscoe at The Briscoe Law Firm, PLLC toll free (877) 397-5991, or via email at [ WBriscoe@TheBriscoeLawFirm.com ]. There is no cost or fee to you.

The Briscoe Law Firm is a full service business litigation and shareholder rights advocacy firm with more than 20 years of experience in complex litigation matters.

Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.