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 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-us/.
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SOURCE WeissLaw LLP