Advanced Television

TiVo hit by shareholder’s lawsuit

April 21, 2020

By Chris Forrester

The Shareholders Foundation has announced that an investor, who currently hold shares of TiVo, has filed a lawsuit in connection with the takeover of TiVo Corp.

The class action concerns the December 19th 2019 all-stock transaction between Tivo and Xperi, representing approximately $3 billion of combined enterprise value. The merger agreement provides for a 0.455 fixed exchange ratio. Based on a closing price of $20.94 per share investors in TiVo will receive a value of approximately $9.53 per TiVo shares they hold.

However, this particular plaintiff alleges that the Registration Statement that was filed in connection with the takeover omits material information with respect to the Proposed Transaction, which renders the Registration Statement false and misleading.

There are other legal actions around. WeissLaw LLP is mounting a similar potential class action and investigating possible breaches of fiduciary duty and other violations of law by the board of directors of Xperi and TiVo with the proposed merger of the two companies.

Rigrodsky & Long has already filed its class action citing a similar complaint at TiVo/Xperi with the Delaware District Court.

Categories: Articles, Business, M&A