The securities litigation law firm of Brower Piven commenced an investigation into possible breaches of fiduciary duty and other violations of state law by the Board of Directors of The Coast Distribution System, the firm announced in a news release Friday.
The firm is investigating the proposed buyout of Coast by LKQ Corp. in a transaction valued at approximately $29 million
Under the terms of the transaction, Coast Distribution shareholders are expected to receive $5.50 in cash for each share of Coast Distribution common stock held.
The firm’s investigation seeks “to determine, among other things, whether the company’s Board of Directors failed to satisfy their duties to shareholders, including whether the Board adequately pursued alternatives to the acquisition and whether the Board obtained the best price possible for the company’s shares of common stock.”
More information about the firm and its investigation can be found here.