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ESMT.US
id: 1357
EngageSmart (ESMT) Merger Issues Case
D. Delaware
Court1:24-cv-01083
Case number10/23/2023
Class period Start01/26/2024
Class period End12/09/2024
Lead Plaintiff motion deadline- $ESMT stockholders filed a suit against EngageSmart for hiding conflicts of interest in the merger and misleading investors about the fairness of the deal.
- ESMT shareholders faced major losses after the company’s merger, which undervalued their stock when it went private.
- EngageSmart investors can join this case to be notified about potential recovery.
Case Details:
On October 23, 2023, EngageSmart announced a merger with Vista Equity Partners, completed on January 26, 2024.
EngageSmart’s sales process was influenced by General Atlantic, which held 35% ownership, while Vista Equity acquired 65%.
Though the merger was claimed to be independent, General Atlantic, the main shareholder, controlled the negotiations, creating conflicts of interest.
Additionally, the 30-day "go-shop" period, managed by General Atlantic and Goldman Sachs, restricted shareholders from considering other offers.
Based on these events, $ESMT stockholders filed a claim against EngageSmart, accusing the company of the following:
- The company provided false and incomplete information regarding the merger process.
- It also misled shareholders into accepting undervalued terms.
Considering all the representations, investors suspect EngageSmart hid conflicts of interest and gave a false impression of the merger’s fairness.
Case Status
Lead Plaintiff Submission
Alleged Offence
Mismanagement,
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose
Suspected Party
Directors,
Management,
Shareholder,
Investment Bank
Security Type
Stocks
Trade Direction
Long
Shock Event Date
10/23/2023
Filing date
09/27/2024
Lead Plaintiff Deadline
12/09/2024