NEW YORK, Sept. 15, 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 Napster, Inc. ("Napster" or the "Company") (Nasdaq:NAPS) arising out of their attempt to sell the Company to Best Buy. Under the terms of the agreement, Napster shareholders would receive $2.65 in cash for every Napster share they own, for a total sale price of approximately $121 million in cash. The price is unfair given that the Company has a book value that includes over $1.41 per share in cash and no debt so that Best Buy is effectively only paying approximately $53 million for the Company, which has just posted five consecutive quarters of positive cash flow. Furthermore, the sales process the Company conducted was flawed, given that in contravention of their fiduciary duties to maximize shareholder value, the Company's Board agreed to a "no-shop" provision and a $3 million termination fee which will ensure no superior offer will ever be forthcoming. The proposed acquisition is subject to customary conditions and regulatory approvals.
If you own common stock in Napster and wish to obtain additional information, please contact us at the number listed below or visit http://www.zlk.com/naps.html
Levi & Korsinsky has experience in prosecuting investor securities litigation and an extensive practice in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.