Wherehouse Entertainment disclosed in a Securities and...

Wherehouse Entertainment disclosed in a Securities and Exchange Commission filing that four stockholders suing the company in Delaware have accused the company of failing to get investors the best deal when it agreed to a $118-million buyout last month because it turned down a higher bid two months earlier. The lawsuit says the Torrance video and music retailer rejected a hostile, $14.25-a-share offer from Burbank-based Shamrock Holdings just before the October stock market crash. Shamrock then lowered the bid to $12 a share after the crash, causing Wherehouse to accept a friendly, $14-a-share offer from the New York investment firm Adler & Shaykin.

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