A co-founder of DealerSocket Inc., which makes software for auto dealerships, dropped his challenge to its merger with rival Auto/Mate Inc. in exchange for a buyout of most non-insider shares, according to a Delaware court filing.
The Chancery Court lawsuit targeted DealerSocket’s board and several affiliates of Vista Equity Partners, its private equity control group. It accused them of engineering the deal as part of a “months-long fraud” aimed at creating “artificial valuations of DealerSocket so as to mask losses in” one of Vista’s investment funds.
The case, filed by DealerSocket co-founder Brad Perry, involved direct and derivative claims that ...
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