SAN DIEGO, Oct. 30, 2017 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP has launched an investigation into whether the board members of CalAtlantic Group, Inc. (NYSE: CAA) ("CalAtlantic") breached their fiduciary duties in connection with the proposed sale of the Company to Lennar Corporation (NYSE: LEN and LEN.B). CalAtlantic builds single-family attached and detached homes in the United States.

On October 30, 2017, CalAtlantic announced that it had signed a definitive merger agreement with Lennar. Under the terms of the deal, CalAtlantic stock will be exchanged for 0.885 shares of Lennar Class A common stock. Based on the closing price of Lennar's Class A common stock on October 27, 2017, the implied value of the stock consideration is $51.34 per share. However, shareholders will be subject to the future price fluctuation of Lennar's stock price. CalAtlantic's shareholders will also have the option to elect to exchange all or a portion of their shares for $48.26 cash per share, subject to a maximum cash amount of approximately $1.2 billion.

The investigation concerns whether the CalAtlantic board failed to satisfy its duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for CalAtlantic shares of common stock. Nationally recognized Johnson Fistel is investigating whether the proposed deal price represents adequate consideration, especially given analysts outlook for future earnings growth.

If you are a shareholder of CalAtlantic and believe the proposed buyout price is too low or you're interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker ([email protected]) at 619-814-4471. If emailing, please include a phone number.

About Johnson Fistel, LLP:Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. 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.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.

Contact:Johnson Fistel, LLPJim Baker, 619-814-4471[email protected]

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SOURCE Johnson Fistel, LLP