Corporate Law News

Vista, DealerSocket Board Hit With Auto/Mate Merger Challenge

Jan. 14, 2020, 8:47 PM

DealerSocket Inc., which makes software for auto dealerships, was sued in Delaware on Tuesday by its co-founder, who claims directors affiliated with Vista Equity Partners led a “months-long fraud” to force a merger that benefits only private equity insiders.

The Chancery Court lawsuit targets the company, several Vista affiliates, and a majority of DealerSocket’s board. It accuses them of orchestrating its planned acquisition of competitor Auto/Mate Inc. as part of a fraudulent effort “to create artificial valuations of DealerSocket so as to mask losses in” one of its funds.

The scheme “has included (and continues to include) lies, secrets, value...

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