Bernstein Liebhard LLP Announces Investigation of Vcg Holding Corporation Merger
Thursday, February 18, 2010
Bernstein Liebhard LLP is investigating whether the board of directors of VCG Holding Corporation (“VCG”) (NASDAQ: VCGH) breached its fiduciary duty to its shareholders in agreeing to sell VCG to Rick’s Cabaret International, Inc. (“Rick’s”).
Under the letter of intent for Rick’s to acquire VCG, VCG’s shareholders will receive shares of common stock of Rick’s in exchange for their shares of VCG’s common stock based on an exchange ratio that values each VCG share between $2.20 and $3.80 per share.
However, the principal shareholder in VCG and its affiliates will be receiving other forms of consideration.
Bernstein Liebhard has pursued hundreds of securities, shareholder rights, and consumer cases and recovered approximately $2 billion for its clients. It has been named to The National Law Journal’s “Plaintiffs’ Hot List” in each of the last seven years.