Farmer Brothers $1.29 Share Sale Triggers Fiduciary Duty Probe
Farmer Brothers Coffee Co. agreed to be sold to Royal Cup Coffee and Tea for $1.29 per share, prompting a law firm probe into potential breaches of fiduciary duty and whether shareholders received fair value. Halper Sadeh LLC is seeking increased consideration or additional disclosures on behalf of shareholders.
1. Transaction Details
Farmer Brothers Coffee Co. agreed to be acquired by Royal Cup Coffee and Tea for $1.29 per share, representing the entirety of its outstanding common stock.
2. Legal Investigation
Halper Sadeh LLC has initiated a probe into whether the sale terms breach directors’ fiduciary duties or include provisions that could limit superior competing bids.
3. Shareholder Impact
The firm is pursuing potential relief including increased deal consideration or enhanced disclosures, offering shareholders contingent-fee legal representation without out-of-pocket costs.