In a filing with the Securities and Exchange Commission, InFocus said that shareholder Donald Donovan has filed a class action lawsuit against the company regarding its recent efforts to sell to Image Holdings Corporation, controlled by California entrepreneur John Hui for $39 million. Donovan is not one of the company’s largest shareholders.
Donovan says the offer price, at 95 cents per share, is “unfair and the result of a flawed sale process,” since it doesn’t allow competitive offers. InFocus did receive an unsolicited competing offer from an unnamed party nine days after the original announcement, but did not release any information about the terms of the offer.
David Woolf, the company’s vice president of marketing, said, “We believe there is no merit in the suit and we’re moving to dismiss it immediately.”
To read the announcement in the Portland Business Journal, go here.
To read the original April 13th announcement from InFocus about the offer, go here.