Shareholders Cry Foul on ‘Misleading’ Proxy Issued Ahead of EFI Inc. Merger

(CN) – Shareholders claim in a class action that digital printing technology firm Electronics for Imaging Inc. filed an incorrect proxy statement with the Securities and Exchange Commission in the lead-up to a merger deal.

The class claims that EFI’s proxy statement left out information to calculate operating income, net income earnings per share under non-GAAP metrics, as well as the terminal values for the company, and the net debt the company has based on an analysis performed by Morgan Stanley.

The suit was filed in the District Court of Delaware by lead class plaintiff Earl M. Wheby, Jr. and claims that EFI omitted key information about the proposed merger. EFI is a global technology company that specializes in creating digital imaging from older analog products, packaging and textiles.

The merger agreement with East Private Holdings II LLC and East Merger Sub Inc. states that EFI shareholders will receive $37 per share in cash for their common stock, according to the complaint.

Shareholders claim that EFI was negligent by filing the proxy with “materially false and misleading statements.”

The class seeks to halt to the merger and the dissemination of a proxy statement that more accurately reflects EFI’s business prospects.

The shareholder class are represented by Gina Serra and Brian Long of Rigrodsky & Long P.A. from Wilmington, Del. and Richard Maniskas of RM Law P.C. from Berwyn, Pa.

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