Johnson Fistel, LLP Files Class Action Suit in Connection with Windstream Acquisition of EarthLink
SAN DIEGO, April 5, 2018 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP today announced that a class action has been commenced on behalf of former stockholders of EarthLink Holdings Corp. ("EarthLink") (NASDAQ: ELNK) and current stockholders of Windstream Holdings, Inc. ("Windstream"), in connection with the acquisition of EarthLink by Windstream (the "Acquisition"). The case is brought on behalf of holders of Earthlink common stock (other than defendants) on the record date, January 23, 2017, entitled to vote on the Merger and/or former holders of Earthlink common stock (other than the Company, Windstream or any of their respective direct or indirect subsidiaries) at the Effective Time of the Merger who received 0.818 shares of Windstream common stock per each share of EarthLink common stock issued and outstanding immediately before the Effective Time of the Acquisition. This action was filed in the Eastern District of Arkansas and is captioned Murray v. EarthLink Holdings Corp., et al., No. 4:18-cv-00202-BRW.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from April 5, 2018. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, W. Scott Holleman of Johnson Fistel at 212-802-1486 or via e-mail at [email protected]. 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.
Prior to the Acquisition, EarthLink's networking solutions helped the world's leading organizations turn their networks into platforms for business innovation. On November 7, 2016, EarthLink and Windstream announced that they had entered into a definitive merger agreement (the "Merger Agreement") under which EarthLink would be acquired by Windstream. Following a vote of EarthLink shareholders approving the Acquisition, under the terms of the Merger Agreement, EarthLink stockholders were to receive just 0.818 shares of Windstream for each share of EarthLink common stock held, which the complaint alleges was insufficient and undervalued EarthLink as it was inconsistent with EarthLink's recent financial performance, statements by EarthLink's mangement and analyst targets.
The complaint charges EarthLink, certain of its officers and directors, and Windstream with violations of the Securities Exchange Act of 1933 and the Securities Exchange Act of 1934. More specifically, the complaint alleges that in an attempt to secure shareholder support for the Acquisition, on January 24, 2017, the defendants issued materially false and misleading prospectus and proxy solicitation materials. The prospectus and proxy materials, which recommended that EarthLink shareholders vote in favor of the Acquisition, misrepresent or omit material information about the Acquisition in violation of the federal securities laws.
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
SOURCE Johnson Fistel, LLP
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