NEW YORK, June 20, 2016 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of QLogic Corp. ("QLGC" or the "Company") in connection with the proposed acquisition of the Company by Cavium, Inc. ("Cavium"). On June 15, 2016, the Company announced it had reached a definitive agreement for Cavium to acquire all outstanding shares of QLGC in a cash-and-stock transaction valued at approximately $1.36 billion. Under the terms of the agreement, QLGC shareholders will receive $11.00 in cash and 0.098 of a share of Cavium common stock for each QLGC share they own. This represents total consideration of $15.50 per share.
WeissLaw is investigating whether QLGC's Board acted to maximize shareholder value prior to entering into the agreement. Notably, the per-share consideration offers a mere 12% premium of QLGC's June 14 closing price of $13.67. Further, the Company recently announced positive financial results for the fourth quarter of fiscal year 2016. It reported net income of $18.2 million, representing a $7.1 million increase year-over-year when compared to the $11.1 million reported in the same period of the previous year.
Given these facts, WeissLaw is investigating the Board of Directors' decision to sell QLGC and whether QLGC shareholders will obtain their fair proportionate share of the Company's continued success and future growth prospects. If you own QLGC shares and would like more information about your rights or our investigation, please contact Joshua Rubin either by telephone at (888) 593-4771 or by email at firstname.lastname@example.org.
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 email@example.com or fill out the form on our website, http://www.weisslawllp.com/contact/report_fraud/.
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SOURCE WeissLaw LLP