2009-12-02 19:52:28 - Lawsuit on behalf of certain current investors in Youbet.com, Inc. (Public, NASDAQ:UBET) over alleged breaches of fiduciary duty by the Youbet.com board of directors – Contact the Shareholders Foundation, Inc.

At least five separate shareholders of YouBet have filed lawsuits in Los Angeles Superior Court alleging that Churchill Downs is underpaying for the Burbank company.

If you are currently an investor in shares of Youbet.com, Inc. (Public, NASDAQ:UBET), and purchased the shares before November 11, 2009, and / or have additional information relating to the investigation, you should contact the Shareholders Foundation, Inc. at mail(at)shareholdersfoundation.com or at: +1 (858) 779 - 1554.

The plaintiffs are seeking an unspecified amount of damages and a possible halt to the merger. According to the complaint the plaintiff allege breaches of fiduciary duty by the Board of Directors of Youbet.com arising out of their attempt to sell Youbet.com to Churchill Downs Inc. On November 11,

2009 Youbet.com, Inc. (NASDAQ: UBET) Youbet and Churchill Downs Incorporated (NASDAQ: CHDN) and announced they have entered into a definitive merger agreement under which Churchill Downs Inc would acquire all of the outstanding shares of Youbet.com in a transaction valued at approximately $126.8 million based on the Tues. Nov. 10, 2009, closing price of CDI common stock. Under the terms of the transaction, Youbet.com shareholders would receive a fixed ratio of 0.0598 shares of Churchill Downs Inc common stock plus $0.97 in cash for each share of Youbet.com common stock they own. Based on the closing price of Churchill Downs Inc common stock on Tues. Nov. 10, 2009, the transaction represents a per-share value of Youbet.com common stock of approximately $2.84. According to Youbet.com the merger has been unanimously approved by the Board of Directors of both companies and the offer represents an implied premium of 28% for Youbet.com shareholders over the closing price of Youbet common stock on Tues. Nov. 10, 2009. According to a previous investigation by a law firm “the transaction appears to be unfair” to current investors of Youbet.com, Inc. (NASDAQ:UBET) because the “offer to purchase Youbet.com, Inc. (UBET) appears opportunistically timed to take advantage of the current economic downturn The investigation “concerns whether the Youbet.com Board of Directors breach their fiduciary duties to Youbet.com, Inc. (UBET) shareholders by agreeing to sell UBET at an unfair price thereby harming Youbet.com, Inc. and its shareholders “whether the directors of Youbet.com, Inc. may have breached their fiduciary duties by not acting in UBET shareholders' best interests and “the Company may not have adequately shopped itself around before entering into this transaction and, pursuant to this proposed transaction, Churchill Downs Inc may be underpaying for Youbet.com, Inc, thus unlawfully harming UBET shareholders Youbet.com, Inc. shares UBET traded at about $2.70 per share after the announcement and at about $2.45 per share during the days before the announcement. YouBet stock was trading at $3.71 a share as recently as August 3, 2009 and was trading at $3.50 a share on June 25, 2009. The investigation concerns “whether the Youbet Board of Directors breached their fiduciary duties to Youbet shareholders given that Youbet shares traded as high as $3.91 as recently as July 24, 2009 and the mean price target set by analysts for Youbet stock is $3.88 per share with at least one analyst setting a $4.00 price target. Those who are currently investors in shares of Youbet.com, Inc. (NASDAQ:UBET), and purchased the shares before November 11, 2009, and / or have additional information relating to the investigation, should contact the Shareholders Foundation.