NEW YORK, Oct. 3, 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 sales process the Company conducted to sell the Company 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 $2.5 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 Cherokee and wish to obtain additional information, please contact us at the number listed below or visit http://www.zlk.com/chrk.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.