Rigrodsky & Long, P.A. Investigates Virage Logic Corporation Buyout
June 10 2010 - 3:15PM
Business Wire
Rigrodsky & Long, P.A. announces that it is investigating
potential claims against the board of directors of Virage Logic
Corporation (“Virage Logic” or the “Company”) (Nasdaq: VIRL)
concerning possible breaches of fiduciary duty and other violations
of law related to the Company’s entry into an agreement to be
acquired by Synopsys, Inc. (“Synopsys”) (Nasdaq: SNPS) in a
transaction valued at approximately $315 million, or approximately
$289 million net of cash acquired.
(http://www.rigrodskylong.com/news/VirageLogicCorporation-VIRL).
Under the proposed agreement, Virage Logic shareholders will
receive $12.00 in cash for each share of Virage Logic common stock
they hold. The investigation concerns whether Virage Logic’s board
of directors failed to adequately shop the Company and obtain the
best price possible for Virage Logic shareholders before entering
into the agreement with Synopsys.
As recent as May 5, 2010, Virage Logic announced its second
quarter fiscal 2010 financial results wherein Company President and
CEO, Alex Shubat, commented: “During the past several years, we’ve
focused on all those corporate efforts necessary for building out
our IP product portfolio through new product development as well as
selective acquisitions. The positive results of these efforts were
made apparent in our first quarter of fiscal 2010, when we achieved
a record $21.7 million in revenue. Now, for the second quarter of
fiscal 2010, we are posting another record revenue of $25.2
million. This revenue number represents a 17% quarter over quarter
growth, and a 129% year over year increase.” Dr. Shubat concluded
that “[f]or the third quarter fiscal 2010, we are projecting
revenues of $26.0 million to $27.0 million and non-GAAP EPS results
of $0.10 to $0.13 per share. Included in this forecast is an
estimate of $0.01 from our Strategic Outsourcing business, acquired
from NXP in mid-first quarter fiscal 2010. We had previously
forecasted that this Strategic Outsourcing business would not
contribute positively to our corporate EPS until fourth quarter
fiscal 2010.” Indeed, according to Yahoo! Finance, at least one
analyst has set a price target of $15.85 per share.
If you own the common stock of Virage Logic and purchased your
shares before June 10, 2010, if you have information or would like
to learn more about these claims, or if you wish to discuss these
matters or have any questions concerning this announcement or your
rights or interests with respect to these matters, please contact
Seth D. Rigrodsky, Esquire or Noah R. Wortman, Case Development
Director, of Rigrodsky & Long, P.A., 919 N. Market Street,
Suite 980, Wilmington, Delaware, by telephone at (888) 969-4242, or
by e-mail to info@rigrodskylong.com.
Rigrodsky & Long, P.A., with offices in Wilmington, Delaware
and Garden City, New York, regularly litigates securities class,
derivative and direct actions, shareholder rights litigation and
corporate governance litigation, including claims for breach of
fiduciary duty and proxy violations in the Delaware Court of
Chancery and in state and federal courts throughout the United
States.
Attorney advertising. Prior results do not guarantee a similar
outcome.
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