Stockholders have filed a class action suit against the board of directors of Lowrance Electronics over the proposed acquisition by Simrad Yachting.
Lowrance last week announced its board had approved an agreement with Simrad to purchase outstanding shares of the company for $37 a share in cash.
The lawsuit, filed in Oklahoma state court, alleges the board breached its fiduciary duties by entering into the agreement with Simrad and by not making adequate disclosure in its filings with the US Securities and Exchange Commission. The suit seeks to block the acquisition.
Lowrance, in a statement, said the lawsuit is without merit and that it intends to vigorously defend against it.
Simrad, a Norway-based company, is not named in the suit.
Lowrance, headquartered in Tulsa, Okla., manufactures sonar and GPS products, digital mapping systems and accessories for marine, general consumer and aviation use.