A lawsuit was filed for investors in shares of Envivio Inc (NASDAQ:ENVI) in connection with the proposed takeover was announced and NASDAQ:ENVI stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 10/15/2015 -- A shareholder in NASDAQ:ENVI shares filed a lawsuit in effort to halt the proposed takeover of Envivio Inc by Ericsson for $4.10 per share.
Investors who purchased shares of Envivio Inc (NASDAQ:ENVI) and currently hold any of those NASDAQ:ENVI shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:ENVI stockholders by agreeing to sell Envivio Inc too cheaply via an unfair process to Ericsson.
On September 10, 2015, Envivio Inc (NASDAQ:ENVI) announced that it has entered into an agreement to be acquired by Ericsson. Under the terms of the agreement, Ericsson will commence a cash tender offer to purchase all of Envivio Inc's outstanding shares, with a merger following the completion of the tender offer which would result in all shares not tendered in the tender offer being converted into the right to receive $4.10per share.
However, the plaintiff claims that the proposed consideration NASDAQ:ENVI shareholders will receive is grossly inadequate and undervalues Envivio Inc. The plaintiff says that the deal locks shareholders out of the target's prospects for future growth and doesn't allow them to share equitably in the target's true value. In addition, the plaintiff claims that the process is also unfair to NASDAQ:ENVI stockholders. Indeed, certain of Envivio's major stockholders, collectively owning approximately 34 percent of Envivio's outstanding common stock, have already entered into a tender and support agreement with Ericsson committing to tender all of their Envivio shares in the tender offer and to vote in favor of the merger. The plaintiff alleges that the agreement contains preclusive deal protection devices, such as a no-solicitation, a matching rights and a nearly $4.8 million termination fee provision, that deter other bidders from making an offer for Envivio.
Shares of Envivio Inc (NASDAQ:ENVI) closed on October 14, 2015 at $4.09 per share.
Those who are current investors in Envivio Inc shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego