Yodlee Inc (NASDAQ:YDLE) Investor Filed Lawsuit Over Alleged Wrogndoing In Acquisition By Envestnet

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Company Name(s): 
Yodlee
Case Name: 
Yodlee Deal Case 10/19/2015
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: YDLE
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Date Filed: 
10/19/2015
Summary: 

October 21, 2015 (Shareholders Foundation) - An investor who currently holds shares of Yodlee Inc (NASDAQ:YDLE), filed a lawsuit in effort to halt the proposed takeover of Yodlee Inc by Envestnet, Inc.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:YDLE stockholders by agreeing to sell Yodlee Inc. too cheaply via an unfair process to Envestnet, Inc.

On August 10, 2015, Envestnet, Inc. (NYSE:ENV) and Yodlee Inc (NASDAQ:YDLE) announced that the Boards of Directors of both companies have unanimously approved an agreement under which Envestnet will acquire all of the shares of Yodlee in a cash and stock transaction valued at$18.88 per share, or approximately $660 million on a fully-diluted equity value basis.

However, the plaintiff claims that the proposed consideration NASDAQ:YDLE shareholders will receive is grossly inadequate and undervalues Yodlee Inc. Indeed, at least one analyst has set the high target price for NASDAQ:YDLE shares at $19.00 per share. Yodlee Inc reported that its annual Total Revenue rose from $54.43 million in 2011 to $89.08 million in 2014.

In addition, the plaintiff claims that the process is also unfair to NASDAQ:YDLE stockholders. Indeed, in connection with the agreement, certain funds affiliated with Warburg Pincus, which collectively own approximately 26.9 percent of Yodlee's common stock, have already entered into a voting agreement pursuant to which it has committed to support the transaction,.