New York, NY (PressExposure) July 02, 2009 -- Levi & Korsinsky ("L&K") is investigating the Board of Directors of First Advantage Corporation ("First Advantage" or the "Company") (NasdaqGS: FADV) for possible breaches of fiduciary duty and other violations of state law in connection with a proposed sale of the Company to First American Corporation (NYSE: FAF) ("First American"). Under the terms of the proposal, First Advantage stockholders will receive 0.5375 shares of First American common stock for each share of the First Advantage they own. Based on the June 26, 2009 closing price of the common stock of First American, the proposed exchange ratio represents an offer price of $14.04 per First Advantage share.
The proposed offer appears unfair given that First Advantage shares traded at $15.91 per share as recently as April 22, 2009 and as high as $17.73 per share on September 19, 2008 and analysts set a median price target of $16 per share. Also, as of December 31, 2008, First American owned approximately 74% of the economic interest and approximately 91% of the voting interest of First Advantage. Thus, First American's ownership and voting interest in First Advantage means that First American is in a position to squeeze out First Advantage's minority shareholders.
First Advantage provides risk mitigation and business solutions in the United States and internationally. First Advantage reported $779.96 million in revenues with a net income of $34.85 million for fiscal year 2008.
If you own common stock in First Advantage and wish to obtain additional information, please contact us at the number listed below or visit http://www.zlk.com/fadv1.html.
Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.
Contact: Levi & Korsinsky, LLP Eduard Korsinsky, Esq. Juan E. Monteverde, Esq. 30 Broad Street - 15th Floor New York, NY 10004 Tel: (212) 363-7500 Fax: (212) 363-7171 http://www.zlk.com