Says Stock Price May Be Undervalued By Purchaser Alaska Airlines

Two law firms have opened investigations into the sale of Virgin America to Alaska Airlines announced last week.

On April 4, 2016, VA and ALK jointly announced the acquisition of VA, pursuant to which VA shareholders will receive $57.00 in cash for each VA share they own.

The former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC ("KSF") are seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.

In addition, WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Virgin America in connection with the proposed acquisition.

WeissLaw is investigating whether VA's Board acted to maximize shareholder value prior to entering into the agreement.  Notably, ALK announced that it expected the transaction to be immediately accretive to adjusted earnings per share in the first full year.  In addition, ALK announced that it expected a 27% increase in annual revenue.  Further, the acquisition of VA will:

• Expand ALK's presence in the West Coast
• Improve ALK's access to valuable slots and gates in New York and California
• Increase ALK's fleet to 280 aircrafts, and include a new fleet of WiFi-enabled, technology-friendly aircraft
• Increase ALK's daily departures to 1,200
• Increase ALK's customer base
• Strengthen ALK as a competitor to the four largest U.S. airlines.

WeissLaw is investigating whether VA's Board acted in the best interests of VA's public shareholders to maximize shareholder value prior to entering into the agreement with ALK.

(Source: News releases)

FMI: www.ksfcounsel.com, www.weisslawllp.com