SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Johnson & Weaver, LLP has launched an investigation into whether the board members of Lorillard, Inc. (NYSE: LO), breached their fiduciary duties in connection with the proposed $27.4 billion sale of the company to R.J. Reynolds Tobacco Company.

Additional Information:

Lorillard manufactures and sells cigarettes in the United States.

On July 15, 2014, Lorillard and R.J. Reynolds entered into an agreement whereby R.J. Reynolds will acquire Lorillard. Under the terms of the transaction, Lorillard shareholders will receive, for each Lorillard share, $50.50 in cash and 0.2909 of a share in R.J. Reynolds stock at closing, representing $68.88 per share based on yesterday's closing share price.

The investigation concerns whether Lorillard’s board failed to satisfy their duties to the company’s shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for the Company’s shares of common stock. R.J. Reynolds stated that they expect the transaction to be accretive to earnings in the first full year, with strong double-digit accretion in the second year and beyond.

If you are a shareholder of Lorillard and believe (1) the proposed buyout price is too low and (2) you’re interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker (jimb@johnsonandweaver.com) at 619-814-4471.

About Johnson & Weaver, LLP:

Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California and New York. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.