ABILENE, Texas — Law firms Brodsky & Smith LLC and Levi & Korsinsky are investigating potential claims against the board of directors of Alco Stores Inc., in relation to a merger agreement between Argonne Capital Group, LLC and Alco. Under the terms of the transaction, announced July 25, Alco shareholders will receive $14 in cash for each share of Alco stock they own.
The investigation concerns possible breaches of fiduciary duty and other violations of state law by the board of directors of Alco for not acting in the company’s shareholders' best interests in connection with the sale process. A press release from Brodsky & Smith states that the sale price may undervalue Alco both according to its book price and future growth potential. Neither Alco nor Argonne has publicly responded to the investigation.