infoUSA shareholders demand records, express concern

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Omaha, Neb.—Three company shareholders are questioning infoUSA about a number of activities, including company founder-CEO Vin Gupta’s recent bid to take the company private.

Cardinal Capital Management, Greenwich, Conn., filed a Schedule 13D with the Securities and Exchange Commission, demanding to inspect documents related to various activities, including records pertaining to Gupta’s offer, its timing and the dissolution of a special committee formed to evaluate the offer.

Cardinal is also questioning the employment of Gupta family members, as well as company investments including four airplanes and a boat.

“There’s a series of red flags that concerned us,” said Eugene Fox, managing director at Cardinal.

Dolphin Limited Partnership-I LP also recently initiated a search of the company’s records. “”We have sent the non-management directors a letter listing concerns we have with the company,” said Brett Buckley, managing director at Dolphin.

A third company, Awad Asset Management, has verbally posed a series of questions. “We let them know we are very unhappy,” said Jim Awad, chairman, president and chief investment officer at Awad Asset Management. “We want to know exactly what happened. We’re not comfortable with the transparency so far.”

While he did confirm he has spoken with representatives from these companies, Gupta told BtoB, “We have no comment.”

—Carol Krol


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