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DealerTrack Technologies Inc (NASDAQ:TRAK) Investor filed Lawsuit Over Alleged Wrongdoing In Acquisition Filed

  • If you purchased shares of DealerTrack Technologies Inc (NASDAQ:TRAK) and currently hold any of those NASDAQ:TRAK shares, you have certain options and you should contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Company
DealerTrack Technologies Inc
Security
NASDAQ: TRAK

Case Name
DealerTrack Technologies Deal Case 07/10/2015
Type of Lawsuit
Mergers and Acquisition
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Summary

July 14, 2015 (Shareholders Foundation) - An investor who currently holds shares of DealerTrack Technologies Inc (NASDAQ:TRAK), filed a lawsuit in effort to halt the proposed takeover of DealerTrack Technologies Inc. by Cox Automotive, Inc for $63.25 per share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:TRAK stockholders by agreeing to sell DealerTrack Technologies Inc too cheaply via an unfair process to Cox Automotive, Inc.

On June 15, 2015, Cox Automotive, Inc. and DealerTrack Technologies Inc (NASDAQ:TRAK) announced that they have entered into a definitive merger agreement. Under the terms of the proposed transaction, Cox Automotive will acquire DealerTrack Technologies Inc (NASDAQ:TRAK) in an all-cash transaction valued at $4 billion, or $63.25 per NASDAQ:TRAK share.

However, the plaintiff claims that the proposed consideration NASDAQ:TRAK shareholders will receive is grossly inadequate and undervalues DealerTrack Technologies Inc. Indeed, DealerTrack Technologies Inc reported that its annual Total Revenue rose from $353.29 million in 2011 to $854.41 million in 2014. Shares of DealerTrack Technologies Inc (NASDAQ:TRAK) grew from $15.67 per share in September 2011 to as high as $56.74 per share in March 2014. In addition, the plaintiff claims that the process is also unfair to NASDAQ:TRAK stockholders.