The Former Board of Directors of The Orchard Enterprises, Inc. Is Being Investigated by Faruqi & Faruqi, LLP for Potential Breaches of Fiduciary Duties

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Aug 01, 2012, 08:00 ET

NEW YORK, Aug. 1, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities firm headquartered in New York City, is investigating the Board of Directors of The Orchard Enterprises, Inc. ("Orchard" or the "Company") (NASDAQ: ORCD) for potential breaches of fiduciary duties in connection with their conduct related to the sale of the Company to Dimensional Associates LLC, which was completed on July 29, 2012. At the time the Company entered into the merger agreement with Dimensional, Dimensional owned approximately 42% of the Company's outstanding common stock and 99% of the Company's outstanding Series A Preferred Stock, representing an aggregate of approximately 53% of the Company's voting securities. Under the terms of the merger agreement, Orchard's minority shareholders received $2.05 in cash for each share of Orchard's common stock they owned—a grossly inadequate consideration.

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Request more information now by clicking here: www.faruqilaw.com/ORCD. There is no cost or obligation to you.

Whether Orchard's Board of Directors breached their fiduciary duties to the Company's minority stockholders by failing to conduct an adequate and fair sales process prior to agreeing to the sale of the Company to Dimensional, whether the sale of the Company undervalued Orchard's shares, and whether Orchard's Board of Directors unjustly favored Dimensional to the detriment of Orchard's minority shareholders are the key focus of this investigation.

Faruqi & Faruqi, LLP is a national law firm which represents investors and individuals in class action litigation. The firm is focused on providing exemplary legal services in complex litigation in the areas of securities, shareholder, antitrust and consumer litigation, throughout all phases of litigation. The firm has an experienced trial team which has achieved significant victories on behalf of the firm's clients.

If you owned Orchard common stock between March 16, 2012 and July 29, 2012 and would like to discuss your legal rights, please visit us at www.faruqilaw.com/ORCD or contact Richard W. Gonnello, Esq. either via e-mail at [email protected] or by telephone at (877) 247-4292 or (212) 983-9330.

Contact:

Faruqi & Faruqi, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard W. Gonnello, Esq.
[email protected]
Toll Free: (877) 247-4292
Phone: (212) 983-9330

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