Robbins Umeda LLP, a shareholder rights litigation firm, is investigating possible breaches of fiduciary duty and other violations of state law by members of the board of directors of XETA Technologies, Inc. (NASDAQ GM: XETA) in connection with their efforts to sell the company to PAETEC Holding Corp. (NASDAQ GS: PAET).
On February 9, 2011, XETA Technologies and PAETEC announced a definitive merger agreement under which XETA Technologies will become an indirect wholly owned subsidiary of PAETEC. Under the terms of the current agreement, XETA Technologies shareholders will receive $5.50 per share in cash for each share of XETA Technologies common stock. The merger is expected to close within three months.
The investigation seeks to determine whether XETA Technologies's board of directors undertook a fair process to obtain maximum value for its shareholders in light of the company's brightening prospects. Specifically, on December 30, 2010, XETA Technologies reported fourth quarter 2010 revenues of $24.5 million, a 36% increase over fourth quarter 2009 results. XETA Technologies also reported fiscal year 2010 revenue of $85.7 million, a 20% increase over fiscal year 2009 results. Furthermore, XETA Technologies reported a fiscal year 2010 profit of $15,000, compared to a loss of $1.9 million the prior year.
If you own stock in XETA Technologies and would like more information about your rights as a shareholder, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at info@robbinsumeda.com.
Robbins Umeda LLP represents individual and institutional shareholders in derivative, direct, and class action lawsuits. The law firm's skilled litigation teams include former federal prosecutors, former defense counsel from top multinational corporate law firms, and career shareholder rights attorneys. Robbins Umeda LLP has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsumeda.com.
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