San Diego, CA -- (SBWIRE) -- 04/10/2012 -- Another investor in shares of Quest Software, Inc. (NASDAQ:QSFT) filed a second lawsuit against directors of Quest Software, Inc. in effort to block the acquisition of Quest Software, Inc. by affiliates of Insight Venture Partners for $23.00 per share.
Investors who purchased shares of Quest Software, Inc. (NASDAQ:QSFT) prior to March 9, 2012 and currently hold (some of) those NASDAQ:QSFT shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that defendants breached their fiduciary duties owed to NASDAQ:QSFT investors arising out of the attempt to sell Quest Software, Inc. at an unfair price and via an unfair process to affiliates of Insight Venture Partners.
On Friday, March 9, 2012, Quest Software, Inc. announced that it had entered into agreements with affiliates of Insight Venture Partners, under which stockholders not affiliated with the buyout group would receive $23.00 per share in cash.
However, the plaintiff says that the $23offer is unfair to stockholders and undervalues Quest Software. Indeed, recent stock prices leave certain QSFT stockholders with no premium at all, but rather ask them to hand over their shares at a discount.
In fact, QSFT shares jumped from $19.40 on Thursday to $24.13 during Friday, thus above the offer. Furthermore, QSFT shares traded in April 2011 as high as $25.76 and in December 2010 even as high as $28.10 per share, also above the current offer. In addition, an analyst has set the target price for QSFT shares at $29 per share.
Further the plaintiff claims that the process is also unfair to QSFT stockholders. Indeed, Quest Software’s Chairman and CEO, who approximately holds 34% of current shares outstanding, already agreed to support the transaction.
The second lawsuit additionally alleges that the proposed takeover was intended to cover up past financial misdealings by certain executives of Quest Software, Inc. The plaintiff alleges that certain directors agreed to take Quest Software, Inc. private in order to evade an investigation by the U.S. Securities and Exchange Commission.
Shares of Quest Software, Inc. (NASDAQ:QSFT) closed on April 6, 2012 at $23.17 per share, thus above the current offer.
Those who are current investors in Quest Software, Inc. (NASDAQ:QSFT) and purchased their NASDAQ:QSFT shares prior to the announcement, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego