Faruqi & Faruqi, LLP submitted a class action case in the U.S. District Court on behalf of stockholders of Emulex Corporation (NYSE:ELX) who held and continues to hold ELX share purchased on or before February 25 when the Company accepted to be acquired by Avago Technologies Ltd (NASDAQ:AVGO) through Emerald Merger Sub, Inc. The acquisition was approved to be materialized via a tender offer. The charges are against Avago, Emulex, its Board and Merger Sub with infringement of the Securities Exchange Act of 1934.
On February 25, 2015 Merger Sub, Avago and Emulex entered into a definitive deal and Plan of Merger. As per the terms of the deal, Avago initiated its Tender Offer on April 7 and is set to expire on May 5, 2015. After the conclusion of the tender offer, and completion of terms and conditions of the deal, Merger sub will be merged into Emulex.
The sole surviving entity will be Emulex. Simultaneously with the execution of the deal, certain executive officers and directors of Emulex finalized a Tender and Support deal with Merger Sub and Avago under which they accepted to their ELX shares indicating 2.5% of ELX outstanding public stock, in the Offer.
The stockholders stated that there is omitted or misrepresented information that is important for the shareholders to decide on tendering their shares. The offer price of $8 is also considered as inadequate as Emulex posted considerable growth in recent months and topped the revenue and earnings forecast. It undervalues the product portfolio of the company and ignores the prospects for future growth.
Faruqi & Faruqi, LLP is a specialized law firm with broad experience in taking class actions, and expertise in lawsuits involving corporate fraud. The firm was established in 1995 and headquartered in New York City, with offices in California, Delaware and Pennsylvania.