Zendesk misled shareholders when making statements intended to help the company get their approval of its 2022 merger with Zoro Bidco and Zoro Merger Sub, a new class action lawsuit alleges.
Plaintiffs Brian Bailey and Scott Franklin claim Zendesk’s board of directors, prior to the merger, issued a Definitive Proxy Statement with the U.S. Securities and Exchange Commission that they argue contained “materially false and misleading statements.”
Bailey and Franklin argue Zendesk’s board of directors knew that a merger consideration was “inadequate” and directed the company’s management to “downwardly revise” a long-range plan that had been presented for the company through 2025.
“Material statements identified from the Proxy falsely represented the reasonableness of the Fairness Opinion Projections to the Company’s shareholders, and misled Zendesk shareholders as to the fair value of their shares,” the Zendesk class action states.
Bailey and Franklin want to represent a nationwide class of Zendesk public stockholders.
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