Bull & Lifshitz, LLP Announces Investigation of Parlux Fragrances, Inc.

NEW YORK, Jan. 4, 2012 /PRNewswire/ -- Bull & Lifshitz, LLP announces an investigation into possible breaches of fiduciary duty in connection with the proposed sale of Parlux Fragrances, Inc. (NASDAQ: PARL) (referred to as "Parlux" or the "Company") to Perfumania Holdings, Inc. ("Perfumania"), in a cash-and-stock transaction valued at approximately $170 million, based on Perfumania's closing stock price of $19.55 per share on December 22, 2011.

Under the merger agreement, Parlux stockholders may elect to receive, for each share of Parlux common stock that they own, either (i) $4.00 in cash plus 0.20 shares of Perfumania common stock or (ii) .53333 shares of Perfumania common stock, both of which are subject to certain adjustments in the merger agreement.  The maximum amount of cash that will be paid as merger consideration is $61,895,288, and the maximum number of Perfumania shares issuable in the merger is 5,919,052, which amounts are subject to adjustments in certain circumstances as provided in the merger agreement.  If Parlux stockholders elect, in the aggregate, to receive more Perfumania shares than the maximum, those who elected to receive all shares will receive a proportionate amount of the maximum available Perfumania shares plus cash for the shares elected but not received.  The merger agreement values a share of Parlux stock at between $7.91 and $8.55, assuming no adjustments under the merger agreement other than such elections.

Following the merger, the Nussdorf family, members of which are the beneficial owners of approximately 82% of Perfumania's outstanding shares and 11% of Parlux's outstanding shares, are expected to continue to own a majority of Perfumania's outstanding shares.

Bull & Lifshitz, LLP's investigation is focused on whether the proposed deal provides adequate value to the Company's shareholders.

If you are a holder of Parlux common stock and want to discuss your legal rights, you may e-mail or call Bull & Lifshitz, LLP who will, without obligation or cost to you, attempt to answer your questions.  

If you are a shareholder of Parlux and would like more information about our investigation, please contact Joshua M. Lifshitz, Esq. by telephone at [phone] or by sending an e-mail including your contact information to: [e-mail].  All e-mail correspondence should make reference to Parlux.

Bull & Lifshitz, LLP is a New York City-based law firm with significant experience representing investors in merger-related shareholder class actions, shareholder derivative actions, and securities fraud class actions.  For more information about the firm, please visit our website at www.nyclasslaw.com.

ATTORNEY ADVERTISING. © 2012 Bull & Lifshitz, LLP.  The law firm responsible for this advertisement is Bull & Lifshitz, LLP, 18 East 41st Street, New York, New York 10017, [phone].  Prior results do not guarantee or predict a similar outcome with respect to any future matter.

Contact:

Joshua M. Lifshitz, Esq.

Bull & Lifshitz, LLP

Phone:   [phone]

Fax:      [phone]

Email: [e-mail]

 

SOURCE Bull & Lifshitz, LLP

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