A ZAGG Inc. investor sued it in Delaware, seeking company records to probe whether activist pressure drove the board of the phone accessories maker to arrange an underpriced sale to Evercel Inc. so AREX Capital Management LP and Roumell Asset Management LLC could “capture the arbitrage spread.”
“There is a credible basis to suspect” the deal reflects “the board’s fear of a public proxy fight loss,” rather than its independent judgment, the complaint says. “The board had concluded that continuing as a standalone entity was in shareholders’ best interest, only to reverse course after the activists went hostile.”
The lawsuit, ...
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