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JDA Software Group Inc. Message Board

  • sachshah25 sachshah25 Nov 7, 2012 8:39 AM Flag



    Class Challenges Acquisition of JDA Software by Private Equity firm


    (CN) - JDA Software Group shareholders are challenging a $1.9 billion dollar takeover in a shareholder class action lawsuit. Under the terms of the agreement, the private equity firm Red Prairie will acquire JDA for $45 per share in cash.

    According to shareholder Rakesh Kapur, who owns over 10,000 shares of JDA stock, the deal undercuts the company's true value. "Each of the individual defendants breached their fiduciary duties owed to JDA and its stockholders in furtherance of their plan to protect and advance their own interests, at the expense of and to the detriment of JDA and its public stockholders," the complaint states. "Among other things, the individual defendants have agreed to sell the company at an unfairly low price."
    Kapur said JDA directors and executive "have clear and material conflicts of interest and are acting to better their own interests and the interests of JDA's other senior managers and directors at the expense of the company and its public shareholders."
    "Defendants have initiated a process to sell JDA that undervalues the company and vests them with benefits that are not shared equally by JDA's public shareholders - a clear effort to take advantage of the temporary depression in JDA's stock price," the complaint states. "In addition, by agreeing to the proposed transaction. Defendants have capped the price of JDA at a price that does not adequately reflect the company's true value."
    The prominant law firm Tripp Levy PLLC represents the class. Tripp Levy PLLC 877-772-3975

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