Advo Inc. stockholders voted overwhelmingly at its special meeting to adopt the agreement and plan of merger with Valassis Communications Inc. and Michigan Acquisition Corp., a wholly owned subsidiary of Valassis.
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. Among other items, the lawsuit seeks 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.
