Numerex, Sierra Wireless, Executives Stare Down Securities Lawsuit

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Numerex Corp., members of its board of directors, Sierra Wireless, Inc., and Wireless Acquisition Sub, Inc. are facing a proposed securities class action that accuses them of omitting material information from a registration statement filed in connection with Sierra’s potential acquisition of Numerex. The plaintiff, a Numerex stockholder, claims the defendants failed to disclose the details of both companies’ financial projections and the figures used in valuation analyses performed by Numerex’s financial advisor. The suit further argues that the registration statement was not fully transparent with regard to the background of the transaction, claiming it neglected to mention whether other potential buyers were contractually prohibited from submitting superior offers for the company.

The plaintiff says these non-disclosures must be released to stockholders before they can determine for themselves whether the deal is fair.