Zendesk $10 Billion Sale Amid Pressure From Jana Draws Suit (1)

Nov. 17, 2023, 6:02 PM UTCUpdated: Nov. 17, 2023, 7:24 PM UTC

Investors are suing Zendesk Inc.‘s former senior leaders in Delaware, saying they arranged its $10.2 billion take-private buyout to avoid the “humiliation” of losing a campaign to oust them by activist hedge fund Jana Partners LLC.

The proposed class action says the software company’s sale in November 2022 reflected a desperate effort to escape a proxy fight that was “gaining steam” after Jana, run by the billionaire Barry Rosenstein, staged an investor revolt to scuttle Zendesk’s proposed $3.8 billion deal for SurveyMonkey parent Momentive Global Inc.

Zendesk and Jana were on the “1-yard line” of a settlement ...

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