Feeds

Data Domain sued over NetApp takeover

Shareholders cry for EMC

Combat fraud and increase customer satisfaction

Data Domain chose NetApp's takeover bid over EMC, and now dissident shareholders are crying dirty dealing.

Two law firms have launched separate class-action lawsuits against Data Domain's board of directors, saying the bidding process wasn't fair and open.

On Monday, Data Domain rejected a hostile takeover offer from storage giant, EMC, which asked shareholders to back a $30-per-share acquisition. Data Domain's board instead opted for a similar $30-per-share offer from NetApp, to be paid in both cash and stock.

The law firm Levi & Korsinsky has now filed a class-action lawsuit in California, accusing Data Domain's board of unfairly choosing NetApp because it offered cushy executive jobs.

"NetApp offered positions on its board to certain Data Domain officers and there are rumors that Data Domain CEO [Frank] Slootman could be the next CEO of NetApp," the law firm said in a statement. "This raises questions as to whether the sales process conducted by the Board was fair and open."

Meanwhile, attorneys at Bernstein Litowitz Berger & Grossmann on behalf of stock holders from the Police and Fire Retirement System of the city of Detroit accuse Data Domain of giving NetApp an "improper bidding advantage."

The lawsuit filed in Delaware claims NetApp slapped on a "no shop/no talk" provision, matching rights, and a $57m termination fee that prevented that company from talking to EMC or others interested in acquiring the company.

"They agreed to the NetAp merger without following even the most basic process for informing themselves of the best available transaction," the lawsuit claims. It seeks an injunction preventing Data Domain and NetApp from closing the deal.

Shareholder lawsuits are fairly common in major acquisitions, but this one does have a bit of a twist. Data Domain management might not like the idea of selling to EMC, but it's hard to refute (from a shareholder position) that a cash deal is better than a cash-and-stock bid of the same value. ®

3 Big data security analytics techniques

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
AMD's 'Seattle' 64-bit ARM server chips now sampling, set to launch in late 2014
But they won't appear in SeaMicro Fabric Compute Systems anytime soon
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.