December 18, 2015 (Shareholders Foundation) - An investor who currently holds shares of Constant Contact Inc (NASDAQ:CTCT), filed a lawsuit in effort to halt the proposed takeover of Constant Contact Inc. by Endurance International Group Holdings, Inc.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:CTCT stockholders by agreeing to sell Constant Contact too cheaply via an unfair process to Endurance International Group Holdings, Inc

On November 2, 2015, Endurance International Group Holdings, Inc. (NASDAQ:EIGI), and Constant Contact Inc (NASDAQ:CTCT) announced that the two companies have entered into an agreement under which Endurance International will acquire all of Constant Contact's outstanding shares of common stock for $32.00 per share in cash, valuing Constant Contact at approximately $1.1 billion.

However, the plaintiff claims that the proposed consideration NASDAQ:CTCT shareholders will receive is grossly inadequate and undervalues Constant Contact Inc. Indeed, that at least one analyst has set the high target price for NASDAQ:CTCT shares at $50.00 per share and shares of Constant Contact Inc traded as recently as March 2015 as high as $42.93 per share. Furthermore, Constant Contact Inc reported that its annual Total Revenue rose from $285.38 million in 2013 to $331.68 million in 2014 and that its Net Income increased from $7.21 million in 2013 to $14.31 million in 2014. In addition, the plaintiff alleges that the process is also unfair to NASDAQ:CTCT stockholders.

Shares of Constant Contact Inc (NASDAQ:CTCT) closed on December 18, 2015 at $28.95 per share.