Quotient Tech Accused of Ripping Off Acquisition’s Ex-Investors

Quotient Technology Inc. was hit with a lawsuit in Delaware by former investors in a business it bought, SavingStar Inc., who claim the digital marketing company intentionally missed post-deal sales milestones that would have triggered additional merger payments.

The lawsuit, made public Thursday in Delaware Chancery Court, accuses Quotient of running SavingStar into the ground after the acquisition by trying to switch customers to a different product, over objections and warnings from SavingStar management.

The decision to cannibalize, “incapacitate,” and eventually “sunset” SavingStar’s business breached Quotient’s contractual pledge not to intentionally miss revenue targets on which 60% of the $18.1 ...