Shareholders Foundation Announces Investigation of RiskMetrics Group, Inc Board for RISK Investors

SAN DIEGO--(EON: Enhanced Online News)--The Shareholders Foundation Inc. announces an investigation on behalf of current investors of RiskMetrics Group, Inc. (Public, NYSE:RISK), who purchased RISK shares before March 01, 2010, was initiated over potential breaches of fiduciary duty and other violations of state law in connection with an alleged unfair takeover price. The investigation focuses on potential breaches of fiduciary duty and other violations of state law arising out of the attempt to sell RiskMetrics Group, Inc. to MSCI Inc.

“grossly unfair, inadequate, and substantially below the fair or inherent value of RISK shares.”

On March 01, 2010, RiskMetrics Group, Inc. (NYSE: RISK) and MSCI Inc. (NYSE: MXB) announced that they have entered into a definitive merger agreement whereby MSCI Inc. (“MSCI”) will acquire RiskMetrics Group, Inc. (“RiskMetrics”) in a cash and stock transaction valued at $21.75 per share based on MSCI’s closing price of $29.98 per share on Friday, February 26, 2010, or at a transaction value of approximately $1.55 billion.

MSCI’s offer consists of $16.35 in cash and 0.1802 shares of MSCI per share of RiskMetrics.

According to the law firm conducting the investigation, “the transaction appears to be unfair” to current investors of RiskMetrics Group, Inc. (Public, NYSE:RISK) because the offer is “grossly unfair, inadequate, and substantially below the fair or inherent value of RISK shares.”

Shares of RiskMetrics Group, Inc. (NYSE:RISK) traded after the announcement at $21.23 per share, and at $18.71 per share the trading day before the news. RISK shares on September 19, 2008 $24.25 per share, and on August 11, 2008 $25.55 per share.

The firm's investigation "concerns, among other things, whether the consideration to be paid to RiskMetrics shareholders is grossly unfair, inadequate, and substantially below the fair or inherent value of RiskMetrics. The investigation further concerns whether the directors of RiskMetrics may have breached their fiduciary duties by not acting in RiskMetrics shareholders' best interests in connection with the sale process of RiskMetrics,” and whether “the Company may not have adequately shopped itself around before entering into this transaction and, pursuant to the proposed transaction, MSCI Inc. may be underpaying for RiskMetrics Group, Inc. (RISK), thus unlawfully harming RISK shareholders.”

RiskMetrics Group, Inc. reported in 2007 Total Revenue of $240.30million with a Net Income of $2.4million, in 2008 Total Revenue of $296.39million, and in 2009 Total Revenue of $303.36million with a Net Income of $31.13million.

Those who currently are investors in shares of RiskMetrics Group, Inc. (NYSE: RISK), and purchased the shares before March 01, 2010, or have additional information relating to the investigation should contact the Shareholders Foundation Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.

The Shareholders Foundation, Inc. is an investor advocacy group which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The group offers help, support, and assistance for every shareholder, and investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.