BOSTON, Oct. 17, 2012 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, has commenced an investigation into possible breaches of fiduciary duties by the Board of Directors of Cybex International, Inc. ("Cybex" or the "Company") (NASDAQGM: CYBI) with regards to their recently announced going private transaction, scheduled to close in the first quarter of 2013.
Under the terms of the agreement, Cybex shareholders will receive $2.55 in cash per Cybex share held at the time of the transaction. This acquisition was purposely timed to take advantage of a temporary drop in the share price of Cybex. As recently as April 26, 2012, Cybex traded above the price of the proposed transaction. Block & Leviton's investigation seeks to determine, among other things, whether Cybex's Directors breached their fiduciary duties by failing to maximize shareholder value in the going private transaction and the process by which the Cybex Directors considered and approved the transaction.
Cybex's price/earnings ratio indicates a significant discount compared to an average of 18.05 for the Leisure Equipment & Products industry and a significant discount compared to the S&P 500 average of 16.30. Its price-to-book ratio of 1.18 indicates a discount versus the S&P 500 average of 2.21 and a significantdiscount versus the industry average of 5.80. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, Cybex currently trades at a significant discount and consummating the proposed transaction will deprive shareholders of realizing benefits inherent in its current under-valuation .
If you are a Cybex shareholder and have questions about your legal rights, or if you have information relevant to this investigation, please contact attorney Steven P. Harte, Esq. at (617) 398-5600 or email him at Steven@blockesq.com.
Block & Leviton is a Boston-based law firm representing investors nationwide for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 50 years. This notice may constitute attorney advertising.
BLOCK & LEVITON LLP
Steven P. Harte, Esq.
SOURCE Block & Leviton LLP