Virgin Mobile USA, Inc. Hit By Shareholder Lawsuit Challenging the Proposed Takeover

An broker in Virgin Mobile USA, Inc. (Public, NYSE:VM) has filed a proposed balance chic action accusation in the United States District Court of New Jersey on account of investors that purchased the VM shares afore July 28, 2009, over breaches of fiduciary assignment and added violations of accompaniment law in affiliation with an declared arbitrary takeover price.

Those who are currently investors in shares of Virgin Mobile USA, Inc. (NYSE:VM), and purchased the shares afore July 28, 2009, and / or accept added advice apropos to the investigation, should acquaintance the Shareholders Foundation, Inc. at Email: mail(at)shareholdersfoundation.com or alarm us at: +1 (858) 779 - 1554. The claims appear from a proposed merger, appear on July 28, 2009, whereby Sprint Nextel Corporation will catechumen anniversary about traded allotment of Virgin Mobile into the agnate of$4.50 of Sprint banal in a transaction admired at about $483 million. The plaintiff alleges that the Proposed Merger with Sprint and the acts of defendants, as added decidedly declared in the complaint, aggregate a aperture of defendants' fiduciary duties owed to Virgin Mobile's accessible shareholders and a abuse of applicative acknowledged standards administering the defendants herein. The complaint added alleges that in advancing the actionable plan to advertise Virgin Mobile for bare consideration, anniversary of the defendants breached and/or aided and abetted the added defendants' aperture of their fiduciary duties of loyalty, due care, acceptable acceptance and/or deed.

Sprint Nextel Corporation (NYSE:S) and Virgin Mobile USA, Inc., (NYSE: VM) appear on Tuesday 28, 2009 that “their boards of admiral accept accustomed a absolute acceding for Sprint to access Virgin Mobile USA” and that “Each accessible stockholder, captivation in accumulated about 39.7 actor shares on a absolutely adulterated base or 43.3% ownership, will accept Sprint shares accepting a 10-day boilerplate closing amount agnate to $5.50 per Virgin Mobile USA share”. The barter arrangement is accountable to the afterward condition. The barter arrangement for accessible stockholders will be based on Sprint's 10-day boilerplate closing allotment amount catastrophe two trading canicule above-mentioned to closing and the barter arrangement will be accountable to a collar such that in no accident will the barter arrangement be lower than 1.0630 or college than 1.3668.

The transaction is admired at a absolute disinterestedness amount of about $483 million, which includes the amount of Sprint's accepted 13.1% absolutely adulterated buying absorption in Virgin Mobile USA. Previously appear analysis by law firms said said “the transaction appears to be unfair” to accepted investors of Virgin Mobile USA, Inc. (NYSE:VM) “by declining to conduct an accessible and fair arrangement action for the Company” and the “offer to acquirement Virgin Mobile USA for $5.5 per allotment appears opportunistically timed to crop advantage of the accepted bread-and-butter downturn”. Another analysis even alleged the accord “suspicious because it appears from a analysis of the Company's banking statements that the inherent amount of the Company's banal is greater than $5.50 per share, because Sprint already owns abundant of Virgin Mobile's banal that it has the adeptness to behest to Virgin Mobile the amount that it wants to pay for Virgin Mobile, and aswell because Virgin Mobile's Board of Directors has bigger blocked companies added than Sprint from authoritative a bigger offer”.

Virgin Mobile USA, Inc., amid in Warren, New Jersey, is a provider of wireless communications services, alms prepaid casework and postpaid casework targeted at the adolescence market. Virgin Mobile’s articulation and abstracts affairs acquiesce its barter to talk, use argument messaging, account messaging, e-mail and burning messaging on a per acceptance base or according to the agreement of its account amalgam plans. Virgin Mobile appear in 2007 Total Revenue of $1.32542billion with a Net Income of $4.22million and in 2008 Total Revenue of $1.32349billion with a Net Income of $7.95million. Shares of Virgin Mobile USA, Inc. (Public, NYSE:VM) traded on the day afore the advertisement at $4.50 per allotment and afterwards the advertisement at $5.28 per share. VM shares accomplished in 2008 about $9 per share.