A proposed class action lawsuit has been filed against Citrix Systems Inc.’s former chairman, Robert Calderoni, over the company’s $16.5 billion leveraged buyout by affiliates of Vista Equity Partners Management LLC and Elliott Investment Management LP. Calderoni, who was also Citrix’s interim CEO at the time of the transaction, is accused of deflating the company’s financial forecasts to justify lower offers from Elliott, who had been pushing for a sale for years.
Citrix’s stock price had already been impacted by the pandemic and its shift to a software-as-a-service model when Elliott made their move. The lawsuit alleges that Calderoni, in his loyalty to Elliott, manipulated the company’s financial outlook to benefit the activist buyout firm, ultimately leading to a lower buyout offer. The lawsuit claims that Calderoni’s actions were a breach of fiduciary duty to Citrix’s shareholders and seeks to hold him accountable for his role in the buyout deal.
The lawsuit highlights the contentious nature of Citrix’s buyout by Vista Equity Partners and Elliott Investment Management. The lawsuit alleges that Calderoni’s actions in facilitating the buyout were motivated by his relationship with Elliott, rather than acting in the best interests of Citrix and its shareholders. The lawsuit seeks to uncover the full extent of Calderoni’s involvement in the buyout and hold him accountable for any breaches of fiduciary duty.
The lawsuit is the latest development in the ongoing saga surrounding Citrix’s buyout by Vista Equity Partners and Elliott Investment Management. The buyout deal, which was completed in 2020, has faced scrutiny from shareholders and investors who believe that the buyout price was unfairly low given Citrix’s potential for future growth. The lawsuit against Calderoni is an attempt to shed light on the circumstances surrounding the buyout and hold those involved accountable for any misconduct.
It remains to be seen how the lawsuit will proceed and what impact it will have on Citrix, Vista Equity Partners, and Elliott Investment Management. Shareholders and investors will be closely watching the case as it unfolds to see if justice will be served for those who believe they were wronged in the buyout deal. Calderoni’s role in the buyout and his alleged actions to benefit Elliott will be central to the lawsuit, as it seeks to uncover the truth behind Citrix’s controversial buyout deal.
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https://news.bloomberglaw.com/esg/citrixs-16-5-billion-sale-to-elliott-vista-hit-with-challenge
