Advo Files Countersuit Against Valassis

Share this content:

Advo Inc. has filed an answer and counterclaims in response to a complaint filed last month by Valassis Communications Inc.

On Aug. 30, Valassis commenced litigation in the Delaware Chancery Court seeking to rescind the merger agreement with Windsor, CT-based Advo based on allegations of fraud and material adverse changes.

Livonia, MI-based Valassis alleges that Advo's management materially misrepresented the financial health of the company and failed to reveal internal control deficiencies.

Advo's counterclaims seek, among other things:

--A court declaration that Valassis has no right to rescind or terminate or otherwise evade its obligations under the July 5 binding definitive merger agreement;

--A decree of specific performance requiring Valassis to consummate its acquisition of Advo at $37 per share; and

--An order requiring Valassis to pay interest from Sept. 15, on the $37 per share merger consideration due to Advo stockholders.

Advo said that assuming its stockholder approval of the merger agreement at the stockholders meeting on Sept. 13, all of the conditions to closing the merger will be satisfied as of that date, and the terms of the merger agreement require Valassis to consummate the merger within two business days thereafter, or by Sept. 15.

Advo expects that the answer and counterclaims, in a somewhat redacted format to protect non-public, will be available shortly and be posted to Advo's Web site.


Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above