Investigation of Dot Hill by WeissLaw
Acquisition by Seagate may not be in best interest of shareholders.
This is a Press Release edited by StorageNewsletter.com on August 25, 2015 at 2:48 pmThe fairness of the proposed acquisition of Dot Hill Systems Corp. by Seagate Technology Plc is the subject of an investigation by WeissLaw LLP, a national class action, shareholder rights law firm.
The investigation focuses on possible breaches of fiduciary duty and other violations of law by the board of directors of Dot Hill for agreeing to sell the company to Seagate.
On August 18, 2015, the company announced it had reached a definitive agreement for Seagate to acquire Dot Hill in a transaction valued at approximately $694 million. Under the terms of the agreement, Dot Hill shareholders will receive $9.75 for each Dot Hill share they own.
WeissLaw is investigating whether Dot Hill’s board acted to maximize shareholder value.
Notably, analysts have set a target price of $10.00 per share. Additionally, the company recently announced positive financial results.
On August 6, 2015, Dot Hill reported Non-GAAP revenue of $60.6 million in the second quarter of 2015 as compared with $48.4 million in the same period of the previous year, representing growth of 25.2% year-over-year.
Given these facts, WeissLaw is investigating whether Dot Hill’s board acted in the best interests of Dot Hill’s public shareholders by actively shopping the company to maximize shareholder value.
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