NetSpend Investor Claims $1.4B Buyout Favors PE Backers

Law360, Wilmington (February 22, 2013, 9:49 PM EST) -- A NetSpend Corp. shareholder launched a putative class action Friday aimed at halting the prepaid-card company's $1.4 billion takeover by card processor Total System Services Inc., claiming the deal shortchanges public investors for the benefit of private equity firms looking to cash out their holdings.

Filed in Delaware Chancery Court, the complaint claims Netspend's board breached its fiduciary duty to public investors by approving a “grossly unfair and inadequate” $16-per-share deal whose primary purpose is allowing private equity firms JLL Partners and Oak Investment Partners to...
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