Avalara Investors Lose Suit Over $8.4 Billion Take-Private Deal

Avalara Inc. shareholders came up short in alleging that inaccurate proxy statements led the board to approve the tax software company’s sale to a private equity firm for less than expected, a federal court ruled.

Lead investor Martin Sohovich failed to support his claim that four false statements tainted the proxy statement issued prior to Avalara’s August 2022 sale to Vista Equity Partners Management LLC for $8.4 billion, the US District Court for the Western District of Washington said March 1.

Sohovich previously amended the proposed class action complaint and won’t have another chance to re-plead, Judge Marsha J. Pechman ...