BALA CYNWYD, PA / ACCESSWIRE / March 2, 2021 / Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of Communications Systems, Inc. ("CSI" or the "Company") (NASDAQ:JCS) for possible breaches of fiduciary duty and other violations of federal and state law in connection with the agreement to be acquired by Pineapple Energy, LLC ("Pineapple"). Under the terms of the agreement, current CSI shareholders will retain shares in the combined company, initially holding approximately 37% of total shares outstanding. This ownership is expected to decrease over time due to earnouts to Pineapple shareholders and capital to be raised through potential future equity offerings. CSI also expects to distribute to the pre-merger shareholders a cash dividend of at least $1.00 per share prior to the closing of the merger. Additionally, each CSI shareholder as of the merger record date, will receive Contingent Value Rights ("CVRs") that reflect the right to receive that shareholder's percentage of the net proceeds from the sale of legacy CSI businesses and assets, after the closing.
The investigation concerns whether the CSI Board breached its fiduciary duties to shareholders by failing to conduct a fair process and whether Pineapple is paying too little for the Company.
If you own shares of CSI stock and wish to discuss the legal ramifications of the investigation, or have any questions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact Jason L. Brodsky, Esquire, or Marc L. Ackerman, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 805, Bala Cynwyd, PA 19004, visit https://www.brodskysmith.com/cases/communications-systems-inc-nasdaq-jcs/, or call toll free 855-576-4847.
Brodsky & Smith, LLC is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and class action lawsuits. The attorneys at Brodsky & Smith have been appointed by numerous courts throughout the country to serve as lead counsel in class actions and have successfully recovered millions of dollars for our clients and shareholders. Attorney advertising. Prior results do not guarantee a similar outcome.
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Brodsky & Smith, LLC
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SOURCE: Brodsky & Smith, LLC
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