Former California Deputy Attorney General and Special Counsel with Johnson Fistel Launches Investigation into CUI Global (CUI)
SAN DIEGO, June 6, 2019 /PRNewswire/ -- Shareholder Rights Law Firm Johnson Fistel, LLP, with the assistance of former California Deputy Attorney General and Special Counsel Tiffany Johnson, Esq., is investigating potential claims for breaches of fiduciary duty against the board members of CUI Global, Inc. (NASDAQ: CUI) ("CUI Global").
On May 15, 2019, the board caused CUI Global to announce that it had entered into a letter of intent, relating to a business combination with Nikola, LLC. In a Form 8-K filed with the Securities & Exchange Commission (the "SEC"), CUI Global described the transaction by stating it "contemplates that we will issue shares representing approximately 85% ownership of CUI on a post transaction basis, plus cash consideration of $30 million payable at closing, plus $45 million as evidenced by a 1-year unsecured promissory note at 6.0% annualized interest paid quarterly in cash, plus assumption of $15 million in indebtedness. Additionally, the terms contemplate a potential earn out of an additional aggregate consideration of up to $200 million in cash payable over five years that is contingent on our consolidated post-closing EBITDA. The Potential Transaction, if consummated, will result in the equity holders of Nikola, LLC obtaining voting control over CUI."
Following this news, on May 16, 2019, CUI Global's share price immediately fell 16.1% on heavy volume. This recent action is the latest in a series of events that have caused some investors to question whether CUI Global's board members are acting in the company's best interest or have breached their fiduciary duties to the company and its shareholders.
If you have information about this investigation or if you are, or if someone you know is, a shareholder of CUI Global and interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker ([email protected]) at 619-814-4471. If emailing, please include a phone number.
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About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit https://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
[email protected]
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SOURCE Johnson Fistel, LLP
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