While many technology companies are fighting the pull of a global recession, Forgent Networks Inc. is scuffling with a group of its investors.
The Austin-based company that operates as Asure Software is in a proxy fight with investors who oppose management’s plan to take the company private. And that fight has led to a lawsuit.
In January, Forgent’s management disclosed a plan to save on corporate compliance costs by reverting to operating as a private company. But hedge fund operators Pinnacle Partners and Red Oak Partners LLC — which combined directly own 7.35 percent of the shares and indirectly hold almost 16 percent, according to SEC filings — want the company to remain public. Their charge is being led by Red Oak portfolio manager David Sandberg,
The two sides have since traded allegations in federal regulatory filings. Then earlier this month Forgent filed a lawsuit in the U.S. District Court for the Western District of Texas’ Austin Division against Sandberg and several other investors alleging violations of federal securities laws.