Citrix’s $17 Billion Vista, Elliott Deal Draws Suit Before Vote

Citrix Systems Inc. investors filed suit Wednesday in Delaware over claims that the company’s $16.5 billion sale to Vista Equity Partners and Elliott Investment Management—set for a vote Thursday—is an underpriced attempt to head off a hostile takeover by an activist fund following its buyout playbook.

The lawsuit, filed in Delaware Chancery Court, seeks internal files from Citrix to investigate allegations that company leaders “caved” after Elliott made itself a “thorn in the board’s side” while acquiring a 10% stake as part of a multiyear campaign to bully the networking giant into a private equity sale.

Following the failure of ...