September 16, 2015 (Shareholders Foundation) - An investor who currently holds shares of Millennial Media, Inc. (NYSE:MM), filed a lawsuit in effort to halt the proposed takeover of Millennial Media, Inc. by AOL for $1.75 per share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:MM stockholders by agreeing to sell v. too cheaply via an unfair process to AOL.

On September 3, 2015, AOL announced the signing of an agreement to acquire Millennial Media, Inc. (NYSE: MM) for $1.75 per share of Millennial Media common stock.

However, the plaintiff claims that the proposed consideration NYSE:MM shareholders will receive is grossly inadequate and undervalues Millennial Media, Inc as it locks shareholders out of the ability to benefit from the target’s growth potential. Indeed, at least one analyst has set the high target price at $2.15 per share. Furthermore, Millennial Media, Inc. reported that its annual Total Revenue rose from $103.68 million in 2011 to $296.16 million in 2014. In addition, the plaintiff claims that the process is also unfair to NYSE:MM stockholders. The plaintiff claims that the takeover agreement contains certain preclusive deal protection devices, such as a no-solicitation, a $10million termination provision and a potential $2.7 million expense reimbursements provision, that the detriment of the company’s stockholders favor AOL and are designed to unreasonable dissuade potential other suitors from making competing offers.

On September 16, 2015, NYSE:MM shares closed at $1.73 per share.