An investor in NASDAQ:BRCD shares filed a lawsuit in effort to halt the proposed takeover of Brocade Communications Systems, Inc. by Broadcom Limited for $12.75 per share.
Investors who purchased shares of Brocade Communications Systems, Inc. (NASDAQ:BRCD) and currently hold any of those NASDAQ:BRCD shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:BRCD stockholders by agreeing to sell Brocade Communications Systems, Inc. too cheaply via an unfair process to Broadcom Limited.
On Nov. 02, 2016, Broadcom Limited and Brocade Communications Systems, Inc. announced that they have entered into an agreement under which Broadcom will acquire Brocade for $12.75 per share in an all-cash transaction valued at approximately $5.5 billion, plus $0.4 billion of net debt.
However, the plaintiff claims that the proposed consideration NASDAQ:BRCD shareholders will receive is grossly inadequate and undervalues Brocade Communications Systems, Inc. Indeed, at least one analyst has set the high target price for NASDAQ:BRCD shares at $13.00 per share. Furthermore, Brocade Communications Systems, Inc. reported that its Total Revenue rose from over $2.21 billion for the 53 weeks period that ended on November 1, 2014 to over $2.26 billion for the 52 weeks period that ended on October 31, 2015 and that its Net Income for those respective time periods increased from $237.97 million to $340.36 million. In addition, the plaintiff alleges that the process is also unfair Brocade Communications Systems stockholders.
On January 3, 2017, NASDAQ:BRCD shares closed at $12.47 per share
Those who are current investors in NASDAQ:BRCD shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com