SAN DIEGO, Dec. 29, 2015 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that an investor, who currently holds shares of Constant Contact Inc (NASDAQ: CTCT ), filed a lawsuit against the proposed acquisition of Constant Contact Inc by Endurance International Group Holdings, Inc at $32.00 per share.
Investors, who purchased shares of Constant Contact Inc (NASDAQ: CTCT ) prior to November 2, 2015, and currently hold any of those (NASDAQ: CTCT ) shares, have certain options and should contact the Shareholders Foundation, Inc. at mail@shareholdersfoundation.com or call +1 (858) 779 - 1554.
The plaintiff alleges that defendants breached their fiduciary duties owed to (NASDAQ: CTCT ) stockholders by agreeing to sell Constant Contact too cheaply via an unfair process to Endurance International Group Holdings, Inc.
On November 2, 2015, Endurance International Group Holdings, Inc and Constant Contact Inc (NASDAQ: CTCT ) announced that the two companies have entered into an agreement under which Endurance International will acquire all of Constant Contact's outstanding shares of common stock for $32.00 per share in cash, valuing Constant Contact at approximately $1.1 billion.
The plaintiff claims that the proposed consideration (NASDAQ: CTCT ) shareholders will receive is grossly inadequate and undervalues Constant Contact Inc. Indeed, five analysts have set target prices for (NASDAQ: CTCT ) ranging from a high of $50.00 per share to $35.00 per share. In addition, shares of Constant Contact Inc traded as recently as March 2015 as high as $43.18 per share.
In addition, the plaintiff alleges that the defendants employed a fundamentally flawed and inadequate sales process. The plaintiff says that after a three week go-shop period, defendants agreed to a no-solicitation provision that prevents the Company from soliciting other potential bids, that defendants agreed to an information and matching rights provision that requires the Company to disclose confidential information about competing bids to Endurance within forty-eight hours, and then to negotiate in good faith for four business days, and that defendants agreed to a termination fee of $36 million to be paid by the Company in the event it chooses to pursue an alternative, superior offer. The plaintiff claims that the cumulative effect of the deal protection devices and the standstill provisions improperly limits the Board’s ability to act with respect to investigating and pursuing superior proposals and alternatives.
Those who currently hold Constant Contact Inc (NASDAQ: CTCT ) shares have certain options and should contact the Shareholders Foundation, Inc. at mail@shareholdersfoundation.com or call +1 (858) 779 - 1554.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
Shareholders Foundation, Inc. Michael Daniels +1 (858) 779-1554 mail@shareholdersfoundation.com 3111 Camino Del Rio North Suite 423 San Diego, CA 92108
