RALEIGH – An investor has dropped a law suit against the pending merger of IBM and Red Hat, according to a report.
Law360 reported Tuesday that the Red Hat investor “voluntarily dismissed” a proposed class action suit in federal court in Delaware.
Law360 noted that the suit was intended to “block a shareholder vote” on the deal.
An investor in Raleigh-based Red Hat on Tuesday filed a lawsuit seeking to block a shareholder vote on the firm’s $34 billion merger with IBM.
The investor identified as Charles Orgel had filed the suit in federal court in Delaware.
Red Hat shareholders are expected to vote on the deal at a special meeting set for Jan. 16. The IBM-Red Hat merger was announced in October.
The suit says Red Hat and members of its board in a proxy statement calling for approval of the deal by shareholders omitted or misrepresented information “needed to make an informed decision,” according to the legal news site Law360. The proxy statement was filed on Dec. 12.
The case number is 1:18-cv-02045
