Ancestry.com Investor Suit Over Permira Buyout DismissedPhil Milford
Ancestry.com, the world’s largest family history website, won the dismissal of a lawsuit filed in Delaware by investors seeking more money in a $1.6 billion takeover by Permira Advisers LLP.
Ancestry.com, based in Provo, Utah, agreed to be bought by the London-based private equity firm in October 2012 for $32 a share. Stockholders including a Michigan-based pension fund challenged the fairness of the price in Chancery Court in Wilmington.
Judge Leo Strine in December temporarily blocked the sale until the company released information about changed revenue projections and bidding provisions. The transaction was completed Dec. 31.
After a hearing today, Strine granted the company’s motion to dismiss the case, according to court filings.
Ancestry.com argued in court papers that the investors’ allegations “do not establish the extreme set of facts necessary to show bad faith” and that officials “explored every opportunity” to get the highest value.
The case is In re: Ancestry.com Inc. Shareholder Litigation, CA7988, Delaware Chancery Court (Wilmington).