A lawsuit was filed for investors in shares of Gigamon Inc (NYSE:GIMO) in connection with the proposed takeover and NYSE:GIMO stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 12/04/2017 -- The Shareholders Foundation announces that an investor in shares of Gigamon Inc (NYSE:GIMO), filed a lawsuit against the proposed takeover Gigamon Inc. by Elliott.
Investors who purchased shares of Gigamon Inc (NYSE:GIMO) should contact the Shareholders Foundation at firstname.lastname@example.org or call 858-779-1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:GIMO stockholders by agreeing to sell Gigamon Inc cheaply via an unfair process to Elliott.
On Oct. 26, 2017, Gigamon Inc (NYSE:GIMO) announced that they have entered into an agreement under which Elliott will acquire Gigamon for $38.50 per share in cash, for a total value of approximately $1.6 billion.
However, plaintiff claims that the proposed consideration NYSE:GIMO shareholders will receive is grossly inadequate and undervalues Gigamon Inc. Indeed, at least one analyst has set the high price target for NYSE:GIMO shares at $50.00 per share and as recently as September 12, 2017 NYSE:GIMO shares traded in the open market as high as $44.70 per share. Furthermore, Gigamon Inc reported that its annual Total Revenue rose from $221.97 million in 2015 to $310.86 million in 2016 and that its Net Income increased from $6.19 million in 2015 to $49.43 million in 2016. Shares of Gigamon Inc (NYSE:GIMO) reached in 2016 as high as$60.35 per share.
In addition, the plaintiff alleges that the process is also unfair NYSE:GIMO stockholders. Indeed, Elliott Management and its affiliates currently holding a 7.0% equity voting stake in the Company have already agreed to vote their shares in favor of the transaction.
Those who are current investors in Gigamon Inc (NYSE:GIMO) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego