Lawsuit: Investors Out of the Loop in CardConnect Merger

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CardConnect Corp. and the company’s board of directors are being sued over a proposed merger between CardConnect and First Data Corporation. The lawsuit, filed by a CardConnect stockholder, claims that the registration statement issued in connection with the merger is misleading to investors and omits information they require to determine whether the deal is fair. More specifically, the complaint states:

“[T]he Recommendation Statement is materially false and/or misleading because…it fails to disclose certain material internal financial information about the Company, relied on the Individual Defendants to recommend the Proposed Transaction and the Company's financial advisor to render an opinion that the Proposed Transaction is fair to CardConnect stockholders.”

The suit argues that the defendants failed to disclose the details of the processes used to determine the company’s financial projections and its value, robbing stockholders of their right to decide for themselves whether they should support the agreement.