A quarterly report from Books-A-Million Inc. states shareholders have filed seven lawsuits against the company concerning the Anderson family's buyout offer of the company that was founded in Florence.
Executive Chairman Clyde Anderson stated in an April 28 letter to stockholders of the Birmingham-based company that the family wants to purchase their stocks.
The Anderson family owns about 53 percent of the company's stock.
The quarterly filing with the Securities and Exchange Commission doesn't list the names on the suit, but states stockholders filed the suits in Delaware state court against the company, members of the Anderson family and the company's board of directors.
The filing alleges Anderson and the board "breached the fiduciary duties to company stockholders."
The report continues, "It is too early to assess the likelihood of a resolution of these matters or the possibility of an unfavorable outcome."
Another section of the filing states the company, after consulting with its attorneys, believes any liability from legal proceedings connected to the business "is not presently expected to materially affect the financial position, results of operations or cash flows of the company."
The Anderson family is offering to purchase the stock at $3.05 per share. The company closed Tuesday at $3.12 per share.
Reports indicate it would cost about $22.9 million to purchase the remaining shares. Books-A-Million officials said the offer values the total company at about $48.8 million.
Books-A-Million's board of directors has formed a committee of independent directors to evaluate the Anderson family's proposal.
The two-person committee includes J. Barry Mason, former dean of the University of Alabama's School of Business, and Albert C. Johnson, a retired accountant and former finance chief at Birmingham's Dunn Investment Co., according to a company release.
The committee has retained King & Spalding LLP as legal counsel and is retaining financial advisers, according to a company release.
It is unknown why the family wants complete ownership, but Anderson, in a letter to the Securities and Exchange Commission, said it does not involve a sale or merger at this time.
The company operates 255 stores in 31 states.
The company operates superstores under the names Books-A-Million, Books & Co., and 2nd & Charles and traditional stores under the names Bookland and Books-A-Million.
Bernie Delinski can be reached at 256-740-5739 or bernie.delinski@TimesDaily.com.