MONSEY, N.Y., Feb. 09, 2023 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP is investigating whether the directors of Sumo Logic, Inc. (Nasdaq: SUMO) (“SUMO”) acted in the best interests of SUMO shareholders in approving the sale of SUMO to Francisco Partners for $12.05 per share in cash.
If you remain a SUMO shareholder and have questions about your legal rights, you may contact our firm at the following link to discuss your options at no charge:
https://wohlfruchter.com/cases/sumo-logic/
Alternatively, you may contact us by phone at 866-833-6245, or via email at alerts@wohlfruchter.com.
Why is there an investigation?
On February 9, 2023, SUMO announced that it had agreed to be acquired by Francisco Partners for $12.05 per share in cash. The agreement has been approved by the SUMO board of directors (“Board”).
“We are investigating whether SUMO’s Board acted in the best interests of SUMO shareholders in approving the sale,” explained Joshua Fruchter, one of the law firm’s name partners. “This includes whether the acquisition price adequately compensates SUMO shareholders, and whether all material information regarding the transaction has been fully disclosed.”
Notably, according to an analysis of Wall Street price targets for SUMO in the last 90 days published on Seeking Alpha, there is a high price target of $18.00 per share. This is above the deal price, which suggests at least one Wall Street analyst thinks the deal price is too low.
Additionally, the deal price is well below the $22.00 per share at which SUMO priced its IPO on September 16, 2020, which suggests that Francisco Partners may be taking advantage of the temporary market downturn to acquire SUMO at an unfair price.
About Wohl & Fruchter
Wohl & Fruchter LLP, with offices in New York City and Monsey, has for over a decade been representing investors in litigation arising from fraud and other corporate misconduct, and recovered hundreds of millions of dollars in damages for investors. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
Contact:
Wohl & Fruchter LLP
Joshua E. Fruchter
Toll Free 866.833.6245
alerts@wohlfruchter.com
www.wohlfruchter.com
