A hedge fund has initiated a formal legal challenge against the acquisition price paid for financial technology firm MeridianLink, signaling potential unrest among former shareholders months after the company’s departure from public markets. The dispute centers on whether the $20 per share cash payout adequately reflected the company’s value in its $2 billion privatization.
Investor Petitions Delaware Court
The Verition Multi-Strategy Master Fund filed a petition with the Delaware Chancery Court this Tuesday, contesting the fairness of the $20.00 per share price paid during the take-private transaction. This move makes Verition the first party to file a formal lawsuit regarding the matter.
However, a broader wave of dissent may be forming. Other investment funds that held stakes at the time of the deal have already submitted valuation demands to MeridianLink. This activity suggests the company could face additional legal proceedings questioning the adequacy of the shareholder compensation.
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Scrutiny Under Appraisal Rights
The acquisition by funds managed by Centerbridge Partners was finalized on October 24, 2025. The all-cash deal valued MeridianLink at approximately $2 billion and resulted in its delisting from the New York Stock Exchange, with all shareholders receiving $20.00 in cash for each share they owned.
The legal action now underway is known as an “appraisal proceeding,” a specific mechanism in U.S. corporate law. It allows shareholders who believe they received insufficient compensation in a merger or acquisition to seek a judicial determination of the fair value of their shares. Such proceedings routinely increase scrutiny on completed private equity buyouts.
With the filing in Delaware, a detailed examination of the valuation methodology will commence. Should the court determine that a higher fair value existed at the time of the acquisition, MeridianLink would be obligated to pay the difference, plus interest, to the petitioning investors.
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