CUPERTINO, Calif., Aug. 30, 2016 /PRNewswire/ -- Between August 25, 2015 and September 2, 2015, five stockholders of Dot Hill Systems Corp. ("Dot Hill") filed putative class action lawsuits in the Court of Chancery of Delaware (the "Court") challenging Seagate Technology plc's ("Seagate") proposed acquisition of Dot Hill for $9.75 per share in cash through a tender offer for Dot Hill shares. The original complaints in the lawsuits sought to enjoin the tender offer and monetary damages for the putative class.
On September 1, 2015, Dot Hill filed a Schedule 14D-9 relating to the tender offer. On September 9, 2015, Plaintiffs filed a Consolidated Amended Complaint, which, in addition to seeking to enjoin the tender offer and monetary damages for the putative class, sought disclosure of additional facts relating to the tender offer. On September 9, 2015, Plaintiffs filed a Motion for Expedited Proceedings and a Motion for a Preliminary Injunction.
On September 28, 2015, the parties executed a Memorandum of Understanding ("MOU") agreeing to resolve the actions in principle on the basis that Dot Hill would file supplemental disclosures relating to the tender offer with the Securities and Exchange Commission, which it subsequently did. Plaintiffs subsequently determined not to proceed with the proposed settlement agreed to in the MOU.
On May 24, 2016, the Court entered an order dismissing the consolidated stockholder actions with prejudice as to Plaintiffs, and without prejudice as to all other plaintiffs and any absent members of the putative class. Pursuant to the order, the Court retained jurisdiction solely for the purpose of determining the Plaintiffs' application for an award of attorneys' fees and reimbursement of expenses.
On August 4, 2016, Plaintiffs' counsel filed a petition for an award of attorneys' fees and reimbursement of expenses in view of the supplemental disclosures made pursuant to the MOU. The petition sought an award of $300,000 in attorneys' fees and reimbursement of expenses. After negotiations, the parties have agreed to resolve the petition for a payment of $230,000 to Plaintiffs' counsel by Seagate. The resolution of the fee petition for $230,000 has not been approved or ruled upon by the Court.
SOURCE Seagate Technology PLC