SAN DIEGO, May 8, 2013 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that an investor who holds Ebix Inc. (EBIX) shares filed a lawsuit to stop the proposed takeover of Ebix Inc. by an affiliate of Goldman, Sachs & Co. for $20.00 per EBIX share.
Investors who purchased shares of Ebix Inc. (EBIX) prior to May 1, 2013 and currently hold any of those EBIX shares, have certain options and should contact the Shareholders Foundation, Inc. at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
On May 1, 2013, Ebix, Inc. announced that it has entered into a merger agreement to be acquired by an affiliate of Goldman, Sachs & Co. Under the terms of the agreement, Ebix shareholders will receive $20.00 per share in cash.
However, the plaintiff alleges that the defendants breached their fiduciary duties owed to EBIX stockholders by agreeing to sell the company too cheaply via an unfair process to Goldman Sachs.
Indeed, shares of Ebix Inc. traded as high as $24.62 per share as recently as September 2012 and at least one analyst has set the high target price at $24.00 per share. In addition, Ebix's financial performance improved recently. For instance, Ebix reported that its annual Total Revenue rose from $97.69 million in 2009 to $199.37 million in 2012 and that its respective Net Income increased from $38.82 million to $70.57 million.
In addition, the plaintiff claims the defendants agreed to preclusive deal protection devices such as a $27 million termination fee provision.
Those who currently are investors in Ebix Inc. (EBIX) shares and purchased a substantial amount of EBIX shares before the announcement have certain options and should contact the Shareholders Foundation.
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.