Bazaarvoice sale undervalues company, lawsuit claims

Austin software maker Bazaarvoice is facing a lawsuit that contends the company’s planned $521 million sale undervalues the company and hurts its shareholders.

The lawsuit, which was filed by a shareholder, says the sales process “was hamstrung by interference from activist stockholders of the company, who struck a settlement agreement with the company board in the midst of the sales process.”

That alleged agreement “significantly affected the composition of the company board, and, therefore, the process itself,” according to the lawsuit.

The lawsuit, which requests a jury trial, was filed in state district court in Travis County by plaintiff Michael Schlaffer. The suit identifies Schlaffer as a Bazaarvoice stockholder living in Illinois.

Named as defendants are Bazaarvoice, company CEO Gene Austin and members of the company’s board of directors.

Bazaarvoice did not immediately respond to a message left Wednesday seeking comment.

Bazaarvoice, which makes software for online and social media marketing, announced last month that it has agreed to be sold to Los Angeles-based private equity firm Marlin Equity Partners.

Last year, Bazaarvoice moved to a new 137,615-square foot headquarters in North Austin, which is