Wilmington, Del.—Cardinal Value Equity Partners has sued infoUSA CEO Vinod Gupta, claiming he breached fiduciary duties owed to shareholders.
Cardinal Value is an affiliate of Greenwich, Conn.-based Cardinal Capital Management. Together, the entities own 6.4% of infoUSA, a database and information company. Cardinal Value filed its complaint Wednesday in Delaware’s Court of Chancery.
Fred Vakili, chief administrative officer of infoUSA, said of the complaint: “We find it to be without any kind of merit. Their facts are wrong.”
The Cardinal companies had previously raised concerns about Gupta’s failed bid to take infoUSA private. It aired those concerns in a Securities and Exchange Commission filing last October, demanding to inspect company documents related to the timing of Gupta’s offer and the dissolution of a special committee formed to evaluate the offer.