ITT Educational Services (ESI) shareholders lost over 17% of their value in one day when senior management of ITT Educational Services announced it had received a SEC-issued subpoena. The SEC is seeking documents and information regarding how ITT Educational Services elected to account on its books and records for certain liabilities ITT Educational Services incurred since at least 2009. A securities fraud investigation is underway which seeks to answer for ESI shareholders whether ITT Educational Services stock was artificially inflated because ITT Educational Services management did not properly account for million of dollars in contingent liabilities
MakeMusic (MMUS) Buyout Shareholder Lawsuit
LaunchEquity Partners, LLC announced that it is acquiring MakeMusic (MMUS) for roughly $4.85 in cash per each MakeMusic share. The MakeMusic merger was approved by an unanimous vote of the MakeMusic board of directors. LaunchEquity Partners currently owns over 25% of MMUS common stock.
Asset Acceptance Capital (AACC) Merger Review
On March 6, 2013, Asset Acceptance Capital proposed a merger into Encore Capital Group. If Asset Acceptance shareholders approve the merger by proxy vote, each AACC shareholder will get $ 6.50 per share. The transaction values Asset Acceptance Capital at approximately $200 million. Fair?
Atlantic Power Securities Fraud Lawsuit
Atlantic Power stunned investors by announcing a more than 50% cut in its dividend. However, from the summer of 2012 through to February 28, 2013, management stated that cash flow from operations was strong enough to sustain the dividend at its then level. This securities fraud class action focuses then whether Atlantic Power misled shareholders about the ongoing sustainability of its dividend.