Valassis No Longer Wants to Buy ADVO

LIVONIA, MI—Alleging fraud, Valassis Communications has sued ADVO in chancery court to rescind its $1.3 billion merger agreement. Valassis alleges that ADVO intentionally provided false information and “withheld material information” regarding operating income.

The suit also alleges ADVO executives knew of, but did not disclose, significant internal control deficiencies associated with ADVO’s order-to-cash system.