EQUITY ALERT: Kaskela Law LLC Announces Stockholder Investigation of Purple Innovation, Inc. (NASDAQ: PRPL) Following $4.35 Per Share Buyout Offer

Rhea-AI Summary

Kaskela Law LLC is investigating Purple Innovations (NASDAQ: PRPL) following an unsolicited acquisition proposal from Coliseum Capital Management at $4.35 per share, representing a 55% premium. After this proposal, Purple's shares surged by 40% to close at $3.89 on Sept 19, 2022. However, shortly after, the board adopted a one-year 'poison pill' strategy, causing share prices to decline. The investigation aims to ascertain if the board breached fiduciary duties regarding this acquisition offer and its implications for shareholders.

Positive

• Coliseum Capital proposed to acquire Purple for $4.35 per share, a 55% premium to current trading prices.
• Shares of Purple surged by 40% following the acquisition proposal.

Negative

• The adoption of a one-year 'poison pill' strategy could deter potential buyers and negatively impact stock value.

PHILADELPHIA, PA / ACCESSWIRE / October 18, 2022 / Kaskela Law LLC announces that it is investigating Purple Innovations, Inc. (NASDAQ:PRPL) ("Purple") in connection with recent corporate actions.

On September 19, 2022, Purple reported that it had received an unsolicited proposal from Coliseum Capital Management, LLC ("Coliseum") to acquire all of the outstanding capital stock of Purple for $4.35 per share - an approximate 55% premium to the stock's trading price. In response to this news, shares of Purple's stock increased approximately 40% in value, to close at $3.89 per share on September 19, 2022.

However, approximately one week later, and "in response to the Coliseum proposal," Purple's board of directors disclosed that it had adopted a one-year "poison pill" on September 26, 2022. Following this news, shares of Purple's stock declined in value.

The investigation seeks to determine whether Purple's board of directors violated the securities laws or breached their fiduciary duties to stockholders in their response to the Coliseum proposal.

Purple shareholders who wish to protect their investment are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 - 0750, or by email (skaskela@kaskelalaw.com / abell@kaskelalaw.com) or online at https://kaskelalaw.com/cases/purple-innovations-inc/ , for additional information about this investigation and their legal rights and options.

Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation, and has helped recover in excess of $150 million on behalf of victimized investors. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.

CONTACT:

D. Seamus Kaskela, Esq.
Adrienne Bell, Esq.
KASKELA LAW LLC
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(484) 229 - 0750
(888) 715 - 1740
www.kaskelalaw.com

This notice may constitute attorney advertising in certain jurisdictions.

SOURCE: Kaskela Law LLC

View source version on accesswire.com:
https://www.accesswire.com/720739/EQUITY-ALERT-Kaskela-Law-LLC-Announces-Stockholder-Investigation-of-Purple-Innovation-Inc-NASDAQ-PRPL-Following-435-Per-Share-Buyout-Offer

FAQ

What did Coliseum Capital propose for Purple Innovations?

Coliseum Capital proposed to acquire Purple Innovations at $4.35 per share, which is a 55% premium over the trading price.

How did Purple's stock react to the acquisition proposal?

Purple's stock increased approximately 40% to close at $3.89 per share on September 19, 2022.

What is the purpose of Kaskela Law's investigation into Purple Innovations?

The investigation aims to determine if Purple's board violated securities laws or breached fiduciary duties regarding the response to Coliseum's acquisition proposal.

What is a 'poison pill' strategy in corporate governance?

A 'poison pill' strategy is a defense tactic used by a company to prevent or discourage hostile takeover attempts by making its stock less attractive.

What is the significance of Kaskela Law's investigation for Purple shareholders?

The investigation may provide insights into potential breaches by the board that could affect shareholder rights and the value of their investments.