A lawsuit was filed for investors in shares of Ruckus Wireless Inc (NYSE:RKUS) in connection with the proposed takeover was announced and NYSE:RKUS stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 05/16/2016 -- The Shareholders Foundation announced that an investor who currently holds shares of Ruckus Wireless Inc (NYSE:RKUS), filed a lawsuit against the takeover of Sunnyvale, CA based advanced Wi-Fi solutions supplier Ruckus Wireless Inc. by Brocade.
Investors who purchased shares of Ruckus Wireless Inc (NYSE:RKUS) and currently hold any of those NYSE:RKUS shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call 858-779-1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE: RKUS stockholders by agreeing to sell Ruckus Wireless Inc too cheaply via an unfair process to Brocade.
On April 4, 2016, Brocade (NASDAQ: BRCD) and Ruckus Wireless (NYSE: RKUS) announced that Brocade has entered into an agreement to acquire Ruckus Wireless, Inc. in a cash and stock transaction. Under the terms of the agreement, Ruckus Wireless stockholders will receive $6.45 in cash and 0.75 shares of Brocade common stock for each share of Ruckus common stock. Based on the closing price of Brocade's stock on April 1, 2016, the transaction values Ruckus Wireless Inc at a price of $14.43 per common share.
However, plaintiff claims that the proposed consideration NYSE:RKUS shareholders will receive is grossly inadequate and undervalues Ruckus Wireless. Indeed, at least one analyst has set the high target price for NYSE:RKUS shares at $15.00 per share. Ruckus Wireless Inc reported that its annual Total Revenue rose from $263.07 million in 2013 to $373.38 million in 2015. In addition, the plaintiff alleges that the process is also unfair to NYSE:RKUS stockholders.
Shares of Ruckus Wireless Inc closed on May 12, 2016, at $12.34 per share.
Those who are current investors in Ruckus Wireless Inc shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com