Man sues Zulily over alleged manipulation of stock holders

By Hoang Tran | Oct 13, 2015

A man is suing a popular, large online retailer over claims of deceiving stockholders.

A man is suing a popular, large online retailer over claims of deceiving stockholders.

Scott Mao, on behalf of himself and those similarly situated, filed a class action lawsuit on Sept. 15 in the Western District Court of Washington in Seattle against Zulily Inc., Darrell Cavens, Mark Vadon, W. Eric Carlborg, John Geschke, Mike Gupta, Youngme Moon, Michael Potter, Spencer Rascoff, Liberty Interactive Corp., Mocha Merger Sub Inc., and Ziggy Merger Sub LLC, citing violations of the Securities Exchange Act (SEA).

Mao claims that the defendants violated the SEA by filing a materially incomplete and misleading Schedule 14D-9 Solicitation/Recommendation Statement to the Securities Exchange Commission on Sept. 1, in which it recommends Zulily stockholders to tender their shares for inadequate compensation, whereby Liberty Interactive Corp. can acquire outstanding stocks inexpensively. Mao argues that both Zulily and Liberty conspired to benefit from these transactions through falsifying facts and manipulation and is therefore in violation of SEA.

Mao is demanding a trial by jury and is suing for rescissory damages, for the defendants to disclose all of their proposed transactions and terms, for the defendants to rescind their proposed transaction, attorney fees and court costs, and other relief as deemed just by the court. He is represented by Roger Townsend of the law office of Breskin Johnson & Townsend, PLLC on Seattle, Wash.

U.S. District Court, Washington Western District, Seattle Court case number 2:15-cv-01479-TSZ

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Breskin Johnson & Townsend Pomerantz LLP

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