NEW YORK—CafePress’ recent acquisition by Snapfish hits a snag with new legal concerns. Levi & Korsinsky, a securities litigation firm based in New York City, says it plans to investigate the fairness of the sale.
The notice, posted to Globe Newswire on Oct. 17, states that the investigation addresses whether the board at CafePress “breached their fiduciary duties to stockholders by failing to adequately shop the Company before agreeing to enter into this transaction and whether Snapfish, LLC is underpaying for CafePress shares.” The original sale was reported at more than $25 million at $1.48 per share.
The announcement follows an earlier, similar investigation notice by law firm Rigrodsky & Long, P.A. The Sept. 28 notice by that firm announced it was investigating potential legal claims against the board of directors of CafePress “regarding possible breaches of fiduciary duties and other violations of law related to the Company’s entry into an agreement” to be acquired by Snapfish.
Before the acquisition, CafePress struggled to find a new foothold in the personalization industry, weathering company layoffs, as well as a 22 percent gross profit drop for 2017.