The Philadelphia-based Law Offices of Howard G. Smith has announced that it is investigating potential claims against the board of directors of US fresh produce giant Dole Food Company, related to the proposed acquisition of the company by its CEO David Murdock.
The proposed transaction is valued at US$645m, or US$12 per share, the law firm noted.
"The investigation concerns whether the board of directors breached their fiduciary duties to stockholders by failing to adequately shop the company before agreeing to enter into the proposed transaction, and whether the company has disclosed all material information to shareholders about the transaction," the firm stated. "The company has seen substantial recent growth."
It follows the news last week that New York-based law firm Tripp Levy was also investigating the proposed management buyout by Murdock at a "potential unfairly low price".