Poshmark-Naver Merger Sparks Suit Alleging ‘Conflicted’ Process

A Poshmark Inc. investor sued the online clothing marketplace over concerns that the company’s board had conflicts when negotiating a merger with South Korean search engine Naver Corp.

The lawsuit, brought on Monday in the Delaware Chancery Court by shareholder Evgeny Nikolayevich Berdnikov, says the proposed $1.2 billion merger was a “potentially-conflicted and flawed process orchestrated and spearheaded by certain Company insiders who have their own unique interests in a transaction.”

The suit seeks books and records concerning the merger process. The shareholder also alleges that California-based Poshmark’s proxy statement omitted material information over the potential conflicts of interest. ...