… As Well As The Law Firm of Levi & Korsinsky

The law firm of Levi & Korsinsky LLP (L&K) has initiated an investigation into the circumstances surrounding the acquisition of Data Domain, Inc. by NetApp, Inc. L&K is investigating breaches of fiduciary duty and other violations of state law by the Board of Directors of Data Domain arising out of their agreement to sell the Company to NetApp.

Under the terms of the agreement, Data Domain shareholders will receive $11.45 in cash and between 0.682 and 0.833 shares of NetApp stock for each share of Data Domain they own. Based on the closing price of NetApp stock prior to the announcement, the transaction is valued at approximately $25 per share, or about $1.5 billion. The transaction appears to be unfair because, based on the average closing price of NetApp stock for the last six-months, the transaction is worth only about $24 per share – a negligible premium to Data Domain’s $23.61 share price of as recently as September 25, 2008. Furthermore, the sales process the Company conducted was flawed given that, in contravention of their fiduciary duties to maximize shareholder value, the Company’s Board agreed to a ‘no-shop’ provision and a $57 million termination fee which will ensure no superior offer will ever be forthcoming.