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Brower Piven claims against Internet Brands

FreshFroot

Well-known member
#1
well well well.. how the tables have turned. What do you all think of this news below?

Brower Piven today has commenced a lawsuit in the courts of Delaware Chancery Court against Internet Brands on behalf of all shareholders.

Their claims are simple; they arise out of the proposed transaction announced on September 20th, 2010, whereby an affiliate of the private equity firm Hellman & Friedman Capital Partners VI, L.P. will take private Internet for $13.35 in cash for each share of its Class A and Class B common stock in a transaction valued at $640 million

They allege that the Transaction acts of the individual defendents (Internet Brands) constitute a breach of the individual defendants' fiduciar duties owed to Internets public stockholders and a gross violation of applicable legal standards governing the defendents therein.The complaint further alleges the individual defendants' acceptance of Buyer's acquisition proposal at a grossly inadequate price will constitute a breach of the individual defendants' fiduciary duties owed to Internet's stockholders to take all necessary steps to ensure that the stockholders receive the maximum value realizable for their shares of Internet stock in a transaction effecting the change of corporate control.

If the shoe were on the proverbial other foot, and you wanted to share your Internet Brands stock for $13.35 they wouldn't let you. If you wanted to sell all your stock, they wouldn't let you without shopping around to multiple parties first. We trust that shareholders understand the risks involved with purchasing stock from a company with as many litigations against it as this one. We've asked Internet Brands to stop the sale of their company while we investigate the issue further and the court has the chance to hear us out. e intend to pursue our rights broadly and vigorously. We view Bob Briscoe as a talented CEO, but one that surrounds himself with corrupt board members, and ones who fail to grasp ethical business values.

We imagine that many of you in the community will have questions or concerns and we want to be as open and straightforward with all of you throughout this process as possible; however, since this matter is now being handled by the court system, we may be limited in some regards to
what we can discuss.

Brower Piven
http://www.tradingmarkets.com/news/...ders-of-internet-brands-inc-in-c-1233747.html
 

Kier

XenForo Developer
Staff member
#2
This is fairly standard stuff after a publicly traded company is acquired. It's not really particularly remarkable.
 

FreshFroot

Well-known member
#6
Well I guess it just shows any company that either has claims against them or is making claims. Well... it usually means the company is going downhill.

The problems IB is facing since it controlled Jelsoft is something I've never seen before. I've seen things happen here and there, but to have this many negative factors. It's a bit unbelievable in my opinion.
 

ManagerJosh

Well-known member
#8
Well I guess it just shows any company that either has claims against them or is making claims. Well... it usually means the company is going downhill.
By that measurement, we could say that Apple, Inc. is going downhill as companies have been making patent claims against Apple, and Apple has been making patent claims against other companies.

I would argue an additional condition that would demonstrate a company is going downhill is customer, and stakeholder satisfaction.