MINDBODY, Inc. (NYSE: MB)
A class action has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of MINDBODY, Inc. (NYSE: MB) securities during the period between November 7, 2018 to February 15, 2019, (the “Class Period”).
The MINDBODY class action lawsuit alleges that, on November 6, 2018, defendants intentionally issued disappointing guidance for MINDBODY’s 2018 fourth quarter in order to artificially depress the price of MINDBODY’s stock, attributing the lowered guidance to integration issues with MINDBODY’s early 2018 acquisitions. The market, which had previously been informed that the integrations were on track, reacted poorly, causing the price of MINDBODY Class A common stock to fall by approximately 20% on November 7, 2018.
On December 24, 2018, defendants announced that MINDBODY’s Board had approved a merger agreement with Vista. Pursuant to the agreement, holders of MINDBODY common stock would receive $36.50 in cash for each share owned, with Vista taking MINDBODY private upon completion. Defendants touted this as a 68% premium to MINDBODY’s December 21, 2018 closing price, which was still depressed by the surprising and suspiciously timed negative guidance issued on November 6, 2018. However, unknown to MINDBODY investors, by January 18, 2019, defendants knew that MINDBODY’s fourth quarter 2018 results had materially exceeded not only current analyst estimates, but also those estimates issued prior to the disappointing November 6, 2018 guidance.
During January and February 2019, defendants issued proxy materials urging MINDBODY shareholders to vote “FOR” the transaction, touting the price of $36.50 per share as a substantial premium for MINDBODY shareholders. These proxy materials, however, failed to include information regarding MINDBODY’s “meaningful” fourth quarter 2018 results, disclosure of which was necessary for investors to make an informed decision regarding the proposed transaction. As a consequence, on February 14, 2019, MINDBODY shareholders approved the transaction and received $36.50 per share for each MINDBODY share owned. As a result of these material misrepresentations and omissions, MINDBODY shareholders were misled into selling their shares for less than the fair value of the shares, which was greater than $36.50 per share.
If you are a current shareholder and/or purchased stock during the period between November 7, 2018 to February 15, 2019, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.