Brodsky & Smith Investigates Board of Brocade

Law office of Brodsky & Smith, LLC is investigating potential claims against the board of directors of Brocade Communications Systems, Inc. for possible breaches of fiduciary duty and other violations of state law in connection with the sale of the company to Broadcom Ltd.

Under the terms of the transaction, Brocade shareholders will receive only $12.75 in cash for each share of Brocade stock they own.

The investigation concerns whether the board of Brocade breached their fiduciary duties to shareholders and whether Broadcom is underpaying for the company.

The transaction may undervalue the company and would result in no real gain for many long-term Brocade shareholders. For example, Brocade stock traded at $12.80 per share on June 23, 2015 and an analyst had set a $14.00 per share price target for Brocade stock.

In addition, the price being paid for Brocade appears low given that the purchase should allow Broadcom the means of owning both ends of the FC connection.

Read also:
Levi & Korsinsky Investigating Brocade …
Into whether sale to Broadcom is fair to shareholders.
2016.11.09 | Press Release
Former SEC Attorney Willie Briscoe and Powers Taylor Investigating Brocade …
On acquisition by Broadcom
2016.11.04 | Press Release
Johnson & Weaver Investigates Brocade …
On fairness of price and process in proposed sale to Broadcom
2016.11.03 | Press Release