Class Action Vs. Brocade by Bronstein, Gewirtz & Grossman

Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Brocade Communications Systems, Inc. and certain of its officers, on behalf of shareholders of the common stock on December 12, 2016, in connection with the acquisition of Brocade by Broadcom Limited and its affiliates.

This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 in connection with the acquisition of Brocade by Broadcom.

On November 2, 2016, Brocade and Broadcom publicized that they had entered into a definitive merger agreement under which Broadcom will acquire Brocade. After Brocade shareholders voted to approve the proposed acquisition, Brocade stockholders will receive just $12.75 in cash for each share of Brocade common stock held, under the terms of the merger agreement.

The complaint alleges that in an effort to assure shareholder vote for the proposed acquisition, on December 6, 2016, defendants issued its Preliminary Proxy Statement on Schedule 14A, which was materially false and misleading. On December 20, 2016, defendants issued a materially false and misleading Definitive Proxy Statement on Schedule 14A . The Proxy, which advocates that Brocade shareholders vote for the proposed acquisition, omits and/or misrepresents material information about the biased consideration offered in the proposed acquisition and the company’s actual inherent value on a standalone basis and as a merger partner for Broadcom, including information regarding critical data and inputs underlying the financial analyses supporting the fairness opinion of Brocade’s financial advisor.

The complaint also alleges the omitted or misstated information is material to Brocade shareholders’ ability to evaluate whether they consider the company is worth more on a standalone basis than the consideration offered by Broadcom, and therefore shareholders cannot make the determination whether to vote for or against the proposed acquisition.

Read also:
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Rigrodsky & Long Files Class Action Suit Vs. Brocade
Alleging violations of SEC Act of 1934
2017.01.09 | Press Release
Brodsky & Smith Investigates Board of Brocade
For possible breaches of fiduciary duty and other violations of state law
2016.11.11 | Press Release
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
Law Firm Purcell Julie & Lefkowitz Investigating Brocade
For potential breaches of fiduciary duty by board
2016.09.23 | Press Release