ADA, Okla., June 21, 2011 /PRNewswire/ -- Pre-Paid Legal
Services, Inc. (NYSE: PPD, "Pre-Paid" or the "Company") announced
that Pre-Paid's shareholders adopted the previously announced
merger agreement, dated January 30,
2011, among Pre-Paid, MidOcean PPL Holdings Corp. and PPL
Acquisition Corp. at today's special meeting.
More than 99% of the shares voting at the meeting were voted in
favor of the adoption of the merger agreement, representing
approximately 82% of Pre-Paid's total outstanding shares of common
stock as of the May 13, 2011 record
date for the meeting. Approval of the proposal to adopt the merger
agreement required the affirmative vote of the holders of a
majority of the outstanding shares of the Company's common
stock.
Upon consummation of the merger, Pre-Paid's shareholders will
receive $66.50 in cash for each share
of Pre-Paid common stock they own, other than shareholders that
properly exercise appraisal rights.
About Pre-Paid Legal Services, Inc.
We believe our products are one of a kind, life events legal
service plans. Our plans provide for legal service benefits
provided through a network of independent law firms across the U.S.
and Canada, and include unlimited
attorney consultation, will preparation, traffic violation defense,
automobile-related criminal charges defense, letter writing,
document preparation and review and a general trial defense
benefit. We have an identity theft restoration product we think is
also one of a kind due to the combination of our identity theft
restoration partner and our provider law firms. More information
about our products and us can be found at our homepage at
www.prepaidlegal.com.
Forward-Looking Statements
This press release contains statements that constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are
based on the current expectations and beliefs of the Company and
are subject to a number of risks, uncertainties and assumptions
that could cause actual results to differ materially from those
described in the forward-looking statements. Any statements that
are not statements of historical fact (such as statements
containing the words "believes," "plans," "anticipates," "expects,"
"estimates" and similar expressions) should be considered
forward-looking statements. Among others, the following risks,
uncertainties and other factors could cause actual results to
differ from those set forth in the forward-looking statements: the
risk that the merger may be delayed or may not be consummated; the
risk that the Merger Agreement may be terminated in circumstances
that require us to pay a termination fee of $21.5 million; the risk that if Parent breaches
the Merger Agreement, the maximum amount the Company could recover
from Parent is $50 million; risks
related to the diversion of management's attention from our ongoing
business operations; risks regarding the failure of Parent to
obtain the necessary financing to complete the merger; and the
effect of the announcement of the proposed merger or operational
activities taken in anticipation of the merger on our business
relationships (including, without limitation, employees, members,
associates and provider law firms), operating results and
business generally; the outcome of any legal proceedings that have
been or may be instituted against us related to the Merger
Agreement; the amount of the costs, fees, expenses and charges
related to the merger.
Additional risk factors that may affect future results are
contained in our filings with the SEC, including our Annual Report
on Form 10-K for the year ended December 31,
2010 and Quarterly Report on Form 10-Q for the quarter ended
March 31, 2011, which are
available at the SEC's website www.sec.gov. Because forward-looking
statements involve risks and uncertainties, actual results and
events may differ materially from results and events currently
expected by the Company. The Company expressly disclaims any
obligation or undertaking to update or revise any forward-looking
statements contained herein to reflect any change of expectations
with regard thereto or to reflect any change in events, conditions
or circumstances.
SOURCE Pre-Paid Legal Services, Inc.
