LogMeIn’s Private Equity Buyout Draws Delaware Records Suit

Cloud computing company LogMeIn Inc. was sued in Delaware on Thursday by a shareholder looking to probe whether its $4.3 billion take-private buyout was underpriced because of ties between its board and the private equity consortium that acquired it.

It “appears” that the board’s acquiescence to an $86.05-a-share offer from Francisco Partners and Elliott Management Corp. “was driven by the desires of the insiders to receive unique benefits in the form of equity or a rollover investment,” the lawsuit says.

The LogMeIn directors had previously rejected offers of $105 and $111 per share, according to the Chancery Court complaint filed ...