A lawsuit was filed for investors in shares of Xoom Corp (NASDAQ:XOOM) in connection with the proposed takeover was announced and NASDAQ:XOOM stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 07/20/2015 -- An investor who currently holds shares of Xoom Corp (NASDAQ:XOOM), filed a lawsuit in effort to halt the proposed takeover of Xoom Corp by PayPal, Inc.
Investors who purchased shares of Xoom Corp (NASDAQ:XOOM) and currently hold any of those NASDAQ:XOOM 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:XOOM stockholders by agreeing to sell Xoom Corp too cheaply via an unfair process to PayPal, Inc.
On July 1, 2015, PayPal, Inc. and Xoom Corp (NASDAQ:XOOM) announced an agreement under which PayPal will acquire Xoom Corp (NASDAQ:XOOM) for $25 per share in cash or an approximate $890 million enterprise value.
However, the plaintiff claims that the proposed consideration NASDAQ:XOOM shareholders will receive is grossly inadequate and undervalues Xoom Corp. Indeed, at least one analyst has set the high target price for NASDAQ:XOOM shares at $32.00 per share. Xoom Corp reported that its annual Total Revenue rose from $50.02 million in 2011 to $159.08 million in 2014. Shares of Xoom Corp (NASDAQ:XOOM) traded in 2013 as high as $34.60 per share.
In addition, the plaintiff claims that the process is also unfair to NASDAQ:XOOM stockholders. Indeed, certain holders of approximately 18% of Xoom's outstanding shares, including all executive officers and directors ofXoom and certain entities affiliated with Sequoia Capital, have already entered into voting and support agreements with PayPal pursuant to which they have agreed to vote in favor of the transaction.
On July 17, 2015, NASDAQ:XOOM shares closed at $25.27 per share.
Those who are current investors in Xoom Corp (NASDAQ:XOOM) shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com