Johnson & Weaver Investigates Brocade …

Shareholder rights law firm Johnson & Weaver, LLP has launched an investigation into whether the board members of Brocade Communications Systems, Inc. breached their fiduciary duties in connection with the proposed sale of the company to Broadcom Limited.

Brocade provides SAN and Internet protocol networking solutions for businesses and organizations worldwide.

On November 2, 2016, Brocade announced it had signed a definitive merger agreement with Broadcom. Under the terms of the agreement, Broadcom will acquire all of the outstanding shares of Brocade common stock for $12.75 per share in cash.

The investigation concerns whether the Brocade board failed to satisfy their duties to the company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for Brocade shares of common stock. Johnson & Weaver is investigating whether the proposed deal price represents adequate consideration.