https://www.prnewswire.com/news-releases/johnson-fistel-llp-files-class-action-suit-in-connection-with-windstream-acquisition-of-earthlink-300625249.html
7 replies (most recent on top)
EarthLink diluted Windstream shareholder value with all the garbage they sold Windstream. I hate to break to everyone, but we didnt and still don’t need the EarthLink employees. Another botched acquisition where the struggling company convinced the buyer they were better. Same thing with Paetec. IMO when Brent Whittington made an exit the company was done.
I do not find it fair to DIS-respect EarthLink as if Windstream is soooooo great....Really!! I work for Windstream just like you and unless your office is down the hall from Tony's..you know that Windstream S---S...and still does!!...
Who would buy EarthLink? The reason no one else acquired Earthlink was because they were EarthLink. One of the meme bees of the management team tried to tell me EarthLink was up Market is the reason Windstream never ran into them. Lmao
I almost fell out of my chair when the announcement was posted on stream.
Great acquisition guys. Way to go on the Asscom deal.
Both this companies where jokes before they maerged together... Is their any real merit to this suite... Elink was and is a steaming pile of garbage if someone can really say with a straight face it was undervalued that person is truly delusional
The investigation concerns whether the EarthLink board failed to satisfy its duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for EarthLink shares of common stock.
Why do you think it sounds like Earthlink was misleading? I read that the stock holders were misled about the potential return from the merger - on both sides. You must be a cool-aid drinker to think windstream was fine before any mergers... but - I must agree - I never understood the 49:51 split - despite anyones attempt to say ELNK had more value.
The complaint charges EarthLink, certain of its officers and directors, and Windstream with violations of the Securities Exchange Act of 1933 and the Securities Exchange Act of 1934. More specifically, the complaint alleges that in an attempt to secure shareholder support for the Acquisition, on January 24, 2017, the defendants issued materially false and misleading prospectus and proxy solicitation materials. The prospectus and proxy materials, which recommended that EarthLink shareholders vote in favor of the Acquisition, misrepresent or omit material information about the Acquisition in violation of the federal securities laws.
Sounds to me like the board and leadership team from EarthLink sold WIN a bag of crap. Right now it's steaming away at the front door.
Maybe Joe Eazor( former CEO) and Louis Alterman ( former CFO) will be held accountable for their financial engineering. I am sure they both cooked the books on this one and will most likely see jail time.
I never understood why Windstream shareholders will own about 51 percent of the combined company when the deal closes, while EarthLink shareholders will own about 49 percent. Even when you look at debt to cash vs value it still doesn't make sense.