November 23, 2016 (Shareholders Foundation) - An investor who currently holds shares of Everyday Health Inc (NYSE:EVDY), filed a lawsuit in effort to halt the proposed takeover of Everyday Health Inc. by Davis, LLC, which comprises the Digital Media Division of j2 Global, Inc. for $10.50 per share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:EVDY stockholders by agreeing to sell Everyday Health Inc too cheaply via an unfair process to Ziff Davis, LLC, which comprises the Digital Media Division of j2 Global, Inc (NASDAQGS: JCOM)

On October 21, 2016, Everyday Health Inc (NYSE:EVDY) announced that it has entered into a merger agreement with Ziff Davis, LLC. Under the terms of the agreement, Ziff Davis will acquire Everyday Health Inc (NYSE:EVDY) for $10.50 per share in cash, representing an approximate enterprise value of $465 million.

However, plaintiff claims that the proposed consideration NYSE:EVDY shareholders will receive is grossly inadequate and undervalues Everyday Health Inc. Indeed, at least one analyst has set the high target price for NYSE:EVDY shares at $17.00 per share and shares of Everyday Health Inc (NYSE:EVDY) reached as high as $18.94 per share in July 2014. In addition, the plaintiff alleges that the process is also unfair to NYSE:EVDY stockholders.