NEW YORK, Oct. 4, 2016 /PRNewswire/ -- Notice is hereby given that Faruqi & Faruqi, LLP has filed a class action lawsuit in the United States District Court for the Western District of Texas, case no. 1:16-cv-01073, on behalf of shareholders of Sizmek, Inc. ("Sizmek" or the "Company") (NasdaqGS: SZMK) who held Sizmek securities and have been harmed by Sizmek's and its board of directors' (the "Board") alleged violations of Sections 13(e), 14(a) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Securities and Exchange Commission ("SEC") Rules 14a-9 and 13e-3 in connection with the ongoing private transaction between Sizmek and Vector Capital ("Vector").
On August 3, 2016, the Company announced that Vector had initiated a tender offer to acquire all of the outstanding shares of Sizmek, valuing the Company at approximately $122 million (the "Proposed Transaction").
If you wish to obtain information concerning this action or view a copy of the complaint, you can do so by clicking here: www.faruqilaw.com/SZMKnotice.
Pursuant to the terms of the Proposed Transaction, which was unanimously approved by the Board, Sizmek shareholders will receive $3.90 in cash per share for each share of Sizmek they own. The complaint claims that this consideration is inadequate in light of the Company's recent financial performance and strong growth prospects.
The complaint also alleges that the Recommendation Statements filed by Defendant Meruelo Investments, by the Company's Board and by Vector, which will be filed with the SEC, provide materially incomplete and misleading information about the Company and the Proposed Transaction, in violation of Sections 13(e) and 14(a) of the Exchange Act and Rules 14a-9 and 13e-3. Further, the Recommendation Statements fail to provide Sizmek's shareholders with material information concerning the financial and procedural fairness of the Proposed Transaction.
Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud. Faruqi & Faruqi, LLP, was founded in 1995 and the firm maintains its principal office in New York City, with offices in Delaware, California, and Pennsylvania.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
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SOURCE Faruqi & Faruqi, LLP