Shareholders Lawsuit Filed Against Pre-Paid Legal

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New York, NY: Two shareholders in Pre-Paid Legal Services have filed a class action lawsuit against the company and its directors alleging that the deal to sell the company shortchanged investors.

The deal has reportedly been under consideration for months, however in January 2011, the company's directors agreed to a $650 million buyout by MidOcean Partners, a privagte equity company. MidOcean agreed to pay $66.50 for each outstanding share of Pre-Paid stock. The deal would make Ada-based Pre-Paid, which has traded on the New York Stock Exchange since 1972, a private company.

The petition was filed in Oklahoma County District Court by shareholders Andrew D. McMullan and James E. McCurdy. The petition claims Pre-Paid and its board struck the deal with MidOcean "pursuant to an unfair process and at an unfair price."

Pre-Paid Legal Services Shareholder Class Action Lawsuit Legal Help

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