RCS Capital Corp (NYSE:RCAP): Law Firms Investigating Investors Capital Holdings Ltd. Sale Process


Dallas, Texas 11/08/2013 (Financialstrend) – New York based RCS Capital Corp (NYSE:RCAP) provides wholesale broker-dealer as well as investment banking and capital markets business activities. It also offers strategic advisory services including debt and equity capital raising advice services and capital market advisory services. On Thursday, the stock gained 1.34% and closed at $18.12, gaining $0.24 from its previous close. The 52 week price ranges between $14.86 and $19.78. The stock has surged over 13.5% during past three months’ trade.

The Law Offices of Vincent Wong recently announced that they have been investigating potential claims related to possible breaches of fiduciary duty along the other violations of state law against the Board of Directors of Investors Capital Holdings Ltd (NYSEMKT:ICH). This investigation is in relation to the sale of the Investors Capital to RCS Capital.

Under the terms of the transaction, shareholders of the Investors Capital may opt to receive $7.25 per share or number of RCS Capital Class A share “equal to the quotient of $7.25 divided by the volume weighted average trading price of a share of RCAP’s Class A common stock for the five consecutive trading days immediately preceding the closing of the Merger.”

The investigation announced by the law firm will look into whether the Investors Capital’s Board of Directors breached any fiduciary duties to the company’s shareholders by failing to substantially shop the company to ensure the best possible value for its shareholders.

Earlier the Law office of Brodsky & Smith, LLC also announced the investigation against the Board of Directors of Investors Capital for not acting in the Company’s shareholders’ best interests in connection with the sale process. Other law firms investigating the matter include New York based Lifshitz Law Firm as well as leading national securities firm Faruqi & Faruqi, LLP where in the partner Juan E. Monteverde is investigating the matter.