DALLAS, Dec. 1, 2011 /PRNewswire/ -- Former United States Securities and Exchange Commission attorney Willie Briscoe and the securities litigation firm of Powers Taylor, LLP are investigating the sale of Magma Design Automation Inc. ("Magma Design" or "LAVA") (NASDAQ: LAVA) to Synopsys for shareholders. Under the proposed acquisition agreement, Magma Design shareholders will receive only $7.35 in cash for each share of Magma Design stock owned, which is well below the price that Magma Design shares traded as recently as August 2011 and significantly lower than analysts' target prices for the company.
If you are an affected investor, and you want to learn more about the lawsuit or join the action, contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at [email protected], or Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 706-9314, or via email at [email protected]. There is no cost or fee to you.
The definitive acquisition agreement involves an all cash transaction valued at approximately $507 million. The transaction is expected to close in the second quarter of 2012.
The investigation centers on whether Magma Design shareholders are receiving adequate compensation for their shares in the buyout, whether the transaction undervalues Magma Design's stock, and whether Magma Design's board attempted to obtain the highest share price for all shareholders prior to agreeing to the deal. According to shareholder rights attorney Willie Briscoe, "Based on the fact that Magma Design shares closed as high as $8.50 per share as recently as July 2011, and the fact that analysts have set the target price for Magma Design/LAVA shares at up to $11.00 per share, we are concerned that the transaction may significantly undervalue Magma Design stock. Our lawsuit will seek to obtain the highest share price for all shareholders."
The Briscoe Law Firm, PLLC is a full service business litigation and shareholder rights advocacy firm with more than 20 years of experience in complex litigation and transactional matters.
Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.
SOURCE Powers Taylor, LLP