NEW YORK, Nov. 4, 2016 /PRNewswire/ -- WeissLaw LLP is
investigating possible breaches of fiduciary duty and other
violations of law by the Board of Directors of Brocade
Communications Systems Inc. ("BRCD" or the "Company") in connection
with the proposed acquisition of the Company by Broadcom Limited
("Broadcom"). On November 2,
2016, the Company announced that it had reached a definitive
agreement for Broadcom to acquire all outstanding shares of BRCD in
a transaction valued at approximately $5.9
billion. Under the terms of the agreement, BRCD
shareholders will receive $12.75 in
cash for each BRCD share they own.
WeissLaw is investigating whether BRCD's Board acted to maximize
shareholder value prior to entering into the agreement.
Notably, at least one analyst set a target price of $14.00, or $1.25
above the offer price. Additionally, BRCD announced
impressive financial results for the third quarter of fiscal year
2016: revenues grew 13% from $523
million in the second quarter of fiscal 2016 to $591 million in the third. Finally,
according to Hock E. Tan, Broadcom's President and CEO, the
transaction will provide significant strategic benefits to Broadcom
by "enhanc[ing its] position as one of the leading providers of
enterprise storage connectivity solutions. . .[and] increas[ing
its] ability to address the evolving needs of [its] customers."
Given these facts, WeissLaw is investigating whether BRCD's
Board acted in the best interests of BRCD's public shareholders to
maximize shareholder value prior to entering into the
agreement. If you own BRCD shares and would like more
information about your rights or our investigation, or if you have
information to share with us, please contact Joshua Rubin by telephone at
(888) 593-4771 or by email at
stockinfo@weisslawllp.com.
WeissLaw LLP has litigated hundreds of stockholder class and
derivative actions for violations of corporate and fiduciary
duties. We have recovered over a billion dollars for
defrauded clients and obtained important corporate governance
relief in many of these cases. If you have information or
would like legal advice concerning possible corporate wrongdoing
(including insider trading, waste of corporate assets, accounting
fraud, or materially misleading information), consumer fraud
(including false advertising, defective products, or other
deceptive business practices), or anti-trust violations, please
email us at stockinfo@weisslawllp.com or fill out the form
on our website, http://www.weisslawllp.com/contact-us/.
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SOURCE WeissLaw LLP