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Cloud Services Company Sued for Securities Fraud over Proposed Acquisition


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March 12, 2021
On Thursday, a common stockholder filed a complaint against “cloud-based software and services company” Synacor and members of its Board of Directors for purported violations of securities laws “in connection with the proposed acquisition of the Company via tender offer by CLP SY Holding, LLC through its wholly-owned subsidiary SY Merger Sub Corporation (‘Merger Sub’) and together with CLP Holding, LLC, ‘Centre Lane’) (the ‘Proposed Transaction’).”
According to the complaint, on February 11, 2021, Synacor entered into a Merger Agreement with Centre Lane, under which “Centre Lane commenced an all cash tender offer (the ‘Tender Offer’) to purchase all outstanding shares it doesn’t own of Synacor’s common stock for $2.20 per share.” Pursuant to the Merger Agreement, the Tender Offer is set to expire at 12:00 midnight EST on March 30, 2021. ....

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