Tripp Levy PLLC Investigates on EMC/Isilon Acquisition

Tripp Levy PLLC, a national securities firm, announces that a lawsuit was filed on behalf of shareholders of Isilon Systems, Inc.

On November 18, 2010, Isilon entered into a merger agreement to have EMC Corp. acquire Isilon’s shares for only $33.85 per share or a total transaction value of $2.25 billion.

However, in the tender offer documents that were filed, it was revealed that Isilon’s true inherent going forward value is closer to $4 billion. In addition, Isilon’s founder, Sujal Patel, is to receive over $17.5 million in connection with the merger. Further, Isilon agreed to a ‘top-up’ option which effectively makes any shareholder vote illusory.

The investigation concerns, among other things, whether the consideration to be paid to Isilon shareholders is grossly unfair, inadequate, and substantially below the fair or inherent value of Isilon. The investigation further concerns whether the board of directors of Isilon may have breached their fiduciary duties by not acting in Isilon shareholders’ best interests in connection with the sale process of Isilon.