A number of The Meet Group’s shareholders have filed a lawsuit in Pennsylvania Federal Court in an attempt to stop the proposed merger with NuCom Group.
The lawsuit comes amidst allegations that the online dating and livestreaming company’s board has withheld information regarding the potential $500 million acquisition.
Plaintiffs are claiming that individual board members look set to profit off the back of the alleged “misleading statements”, at the expense of the investors who believe they are entitled to $6.30 per share.
The news of the proposed acquisition first broke at the beginning of March, and was set to be completed through NuCom Group, a joint organisation from mass media company ProSiebenSat.1 and private equity firm General Atlantic.
NuCom Group is also the parent of portfolio company Parship Group, which owns the online dating brands Parship, Elite Partner and eharmony.
This legal case bears similarities to another lawsuit raised against Match.com in October. It was claimed that the online dating company failed to properly inform investors about potentially illegal practices it was undertaking.
There were concerns that fake accounts were being allowed to send message requests to free users in the hope that they would upgrade to a premium subscription in order to see the interactions.
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