Hot Topic Undervalued In $600M Sycamore Deal, Investors Say

Law360, Los Angeles (March 12, 2013, 4:26 PM EDT) -- Two investors launched separate putative shareholder class actions against Hot Topic Inc. and private equity firm Sycamore Partners in California state court Friday, seeking to halt the retail chain’s $600 million sale to Sycamore and claiming Hot Topic’s directors undervalued the company in the deal.

In nearly identical complaints, Joseph Leone and Steven Weisberg accused Hot Topic’s directors of breaching their fiduciary duties to shareholders by selling Hot Topic’s outstanding shares to Sycamore Partners and two wholly owned subsidiaries for $14 per share, alleging that its...
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