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| Protecting the Rights of Shareholders and Consumers |
Diedrich Coffee Inc. Securities Litigation
Diedrich Coffee Inc. (NasdaqCM: DDRX) shareholder litigation over alleged unfair takeover
On November 3, 2009, Diedrich Coffee Inc. (“Diedrich Coffee” or the “Company”) announced that it agreed to sell the Company to
Peet's Coffee & Tea Inc. ("Peet's") (NasdaqGS: PEET). Under the terms of the transaction, Diedrich Coffee shareholders will
receive $17.33 in cash plus a fraction of a Peet's share valued at about $8.67, based on the closing price of Peet's stock the last
trading day prior to the announcement, for a total transaction value of approximately $213 million.
For the fiscal year ending June 24, 2009, the Company reported total revenue and net income of $62.31 million and $1.592
million, respectively, as compared to total revenue of $46.340 million and a loss of $13.776 million for the fiscal year ending June
25, 2008. The investigation concerns whether the Diedrich Coffee Board of Directors breached their fiduciary duties to Diedrich
Coffee shareholders given that the Company's stock has traded at $31.34 per share as recently as October 26, 2009 and at least
one analyst has set a price target for Diedrich Coffee stock at $35.00 per share.
On November 3, 2009, Diedrich Coffee Inc. (“Diedrich Coffee” or the “Company”) announced that it agreed to sell the Company to
Peet's Coffee & Tea Inc. ("Peet's") (NasdaqGS: PEET). Under the terms of the transaction, Diedrich Coffee shareholders will
receive $17.33 in cash plus a fraction of a Peet's share valued at about $8.67, based on the closing price of Peet's stock the last
trading day prior to the announcement, for a total transaction value of approximately $213 million.
For the fiscal year ending June 24, 2009, the Company reported total revenue and net income of $62.31 million and $1.592
million, respectively, as compared to total revenue of $46.340 million and a loss of $13.776 million for the fiscal year ending June
25, 2008. The investigation concerns whether the Diedrich Coffee Board of Directors breached their fiduciary duties to Diedrich
Coffee shareholders given that the Company's stock has traded at $31.34 per share as recently as October 26, 2009 and at least
one analyst has set a price target for Diedrich Coffee stock at $35.00 per share.
