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Levi & Korsinsky, LLP
Levi & Korsinsky, LLP Investigates Breach of Fiduciary Duty by the Board of Cherokee International Corp.
NEW YORK, Oct. 27, 2008 (GLOBE NEWSWIRE) -- Levi & Korsinsky ("L&K") is investigating breaches of fiduciary duty and other violations of state law by the Board of Directors of Cherokee International Corp. ("Cherokee" or the "Company") (Nasdaq:CHRK) arising out of their attempt to sell the Company to Lineage Power Holdings, Inc. Under the terms of the agreement, Cherokee shareholders would receive $3.20 in cash per share for a total sale price of approximately $105 million. The Cherokee Board breached their fiduciary duties, in part, because the definitive proxy the Company filed on October 24, 2008 in connection with the proposed transaction failed to disclose to shareholders material information including, for example, the management projections relied upon by the Company's financial advisor in rendering its opinion that $3.20 is fair to shareholders. The proposed acquisition is subject to customary conditions and regulatory approvals.