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Saturday, October 19, 2019

Stockholder alleges YuMe filed incomplete form with SEC regarding RhythmOne agreement

By Noddy A. Fernandez | Jan 19, 2018


SAN FRANCISCO (Legal Newsline) – A stockholder of California advertising company YuMe is seeking to enjoin its merger agreement with RhythmOne.

David Feuerborn filed a complaint on Jan. 9 in the U.S. District Court for the Northern District of California against YuMe Inc., Paul Porrini, Mitchell Habib, Adriel Lares, Elias Nader, et al. for alleged violation of the Securities Exchange Act of 1934.

According to the complaint, the plaintiff alleges that on Dec. 26, 2017, after entering a merger agreement by which RhythmOne would acquire YuMe through an exchange offer, RhythmOne and defendants allegedly filed a materially misleading and incomplete Form F-4 registration statement to the Securities and Exchange Commission. He alleges the statement omits projections for RhythmOne and valuation analysis by YuMe's financial adviser Deutsche Bank.

The plaintiff states in the complaint he seeks to enjoin the defendants from completing the exchange offer until the information is disclosed to stockholders.

The plaintiff seeks a declaration that the statement is false or misleading; to enjoin the proposed transaction; award of costs of action, including a reasonable allowance for the fees and expenses of plaintiff’s attorneys and experts; and granting such further relief as the court deems just and proper. He is represented by Rosemary M. Rivas and Donald J. Enright of Levi & Korsinsky LLP in San Francisco.

U.S. District Court for the Northern District of California case number 3:18-cv-00197-JCS

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U.S. District Court for the Northern District of California

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