"Burlington tech company and merger partner receive subpoenas from SEC" by Beth Healy and Hiawatha Bray Globe Staff December 17, 2015
Two Massachusetts companies in the midst of a merger have each received subpoenas from the Securities and Exchange Commission.
Endurance International Group Holdings Inc., a Burlington company that runs Internet hosting companies, agreed in November to acquire the Waltham e-mail marketing firm Constant Contact Inc. for $1.1 billion. The deal was due to close in the first quarter of 2016. Now, the companies have been ordered by the SEC to hand over documents relating to their financial reports, as well as to their sales and marketing practices.
Constant Contact also reported that it faces a class-action lawsuit related to the deal with Endurance. Such lawsuits are routinely filed during acquisitions, said Ilya Grozovsky, senior equities analyst at National Securities in New York, but Grozovsky said the SEC investigation “is not standard practice. That the SEC has asked for this is a little bit unique.”
Especially since the Supreme Court is shutting down such things.