Faruqi & Faruqi, LLP Announces Investigation Regarding the Acquisition of Charming Shoppes Inc.

NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities firm headquartered in New York City, is investigating the Board of Directors of Charming Shoppes Inc. (“Charming Shoppes” or the “Company”) (NASDAQ: CHRS) for potential breaches of fiduciary duties in connection with their duty to disclose material information in the Solicitation/Recommendation Statement Schedule 14D-9 (the “Recommendation Statement”) filed with the S.E.C. on May 15, 2012, which may impair shareholders’ ability to adequately value stock price in relation to the sale of the Company to Ascena Retail Group, Inc. (NASDAQ: ASNA) in an all-cash deal valued at about $890 million. The price per share offered to Charming Shoppes shareholders is also under investigation, as under the terms of the proposed transaction, Charming Shoppes’ stockholders will receive only $7.35 in cash per each share of Charming Shoppes they own, while according to Yahoo! Finance, at least one financial analyst has set a price target of $8.00 for Charming Shoppes. The proposed transaction is structured as a tender offer and may be effectuated without a shareholder vote. The closing of the tender offer is expected to occur on June 12, 2012. Time is of the essence.