Rigrodsky & Long Files Class Action Suit Vs. BrocadeAlleging violations of SEC Act of 1934
This is a Press Release edited by StorageNewsletter.com on 2017.01.09
Rigrodsky & Long, P.A. filed a class action complaint in the United States District Court for the Northern District of California on behalf of holders of Brocade Communications Systems, Inc. common stock in connection with the proposed acquisition of Brocade by Broadcom Limited and its affiliates announced on November 2, 2016.
The complaint, which alleges violations of the Securities Exchange Act of 1934 against Brocade, its board of directors, and Broadcom, is captioned Steinberg v. Brocade Communications, Inc., Case No. 16-cv-07081-EMC (N.D. Cal.).
On November 2, 2016, Brocade entered into an agreement and plan of merger with Broadcom. Pursuant to the merger agreement, Broadcom will acquire Brocade and Brocade shareholders will receive $12.75 per share in cash.
The complaint alleges that, in an attempt to secure shareholder support for the proposed transaction, on December 6, 2016, defendants issued materially incomplete disclosures in a preliminary proxy statement filed with the United States SEC. The proxy statement, which recommends that Brocade stockholders vote in favor of the proposed transaction, omits material information necessary to enable shareholders to make an informed decision as to how to vote on the proposed transaction, including material information with respect to Brocade's financial information and the opinions and analyses of Brocade's financial advisor.
Plaintiff seeks injunctive and equitable relief and damages on behalf of holders of Brocade common stock.