November 7, 2016 (Shareholders Foundation) - An investor who currently holds shares of DTS Inc. (NASDAQ:DTSI), filed a lawsuit in effort to halt the proposed takeover of DTS Inc. by Tessera Technologies, Inc is unfair to NASDAQ:DTSI stockholders.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:DTSI stockholders by agreeing to sell DTS Inc. too cheaply via an unfair process to Tessera Technologies, Inc.

On September 20, 2016, Tessera Technologies, Inc. and DTS, Inc. announced that they have entered into an agreement under which Tessera will acquire DTS for $42.50 per share.

However, plaintiff claims that the proposed consideration NASDAQ:DTSI shareholders will receive is grossly inadequate and undervalues DTS, Inc.
Furthermore, the plaintiff alleges that while individual defendant Kirchner will serve as president of the combined company and the rest of DTS’s management team will retain their positions, the proxy statement fails to disclose the timing and nature of all communications regarding the future employment of DTS’s management team, including who participated in all such communications and that the proxy statement further fails to disclose any information regarding the future roles of Kirchner and the management team at the combined company, including whether any terms or agreements have been negotiated or entered into. Indeed, the proxy statement contains no reference to Kirchner serving as president following consummation of the proposed transaction

In addition, the plaintiff alleges that the process is also unfair to NASDAQ:DTSI stockholders.