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| Protecting the Rights of Shareholders and Consumers |
Youbet.com, Inc. Securities Litigation
Youbet.com, Inc. (NasdaqCM: UBET) shareholder litigation over alleged unfair takeover
On November 12, 2009, Youbet.com, Inc. (“Youbet” or the “Company”) announced that it agreed to sell the Company to Churchill
Downs, Inc. ("Churchill Downs") (NasdaqGS: CHDN). Under the terms of the transaction, Youbet shareholders will receive
0.0598 shares of Churchill Downs common stock plus $0.97 in cash for each share of Youbet they own. Based on the closing
price of Churchill Downs stock prior to the announcement, the proposed transaction values Youbet stock at $2.86 per share for a
total transaction value of approximately $126.4 million.
The investigation concerns whether the Youbet Board of Directors breached their fiduciary duties to Youbet shareholders given
that Youbet shares traded as high as $3.91 as recently as July 24, 2009 and the mean price target set by analysts for Youbet
stock is $3.88 per share with at least one analyst setting a $4.00 price target.
On November 12, 2009, Youbet.com, Inc. (“Youbet” or the “Company”) announced that it agreed to sell the Company to Churchill
Downs, Inc. ("Churchill Downs") (NasdaqGS: CHDN). Under the terms of the transaction, Youbet shareholders will receive
0.0598 shares of Churchill Downs common stock plus $0.97 in cash for each share of Youbet they own. Based on the closing
price of Churchill Downs stock prior to the announcement, the proposed transaction values Youbet stock at $2.86 per share for a
total transaction value of approximately $126.4 million.
The investigation concerns whether the Youbet Board of Directors breached their fiduciary duties to Youbet shareholders given
that Youbet shares traded as high as $3.91 as recently as July 24, 2009 and the mean price target set by analysts for Youbet
stock is $3.88 per share with at least one analyst setting a $4.00 price target.
