Qualcomm Acquisition Delayed: Court enjoins vote on Atheros buy
Shareholder Vote Rescheduled to March 18, 2011
The Court of Chancery of the State of Delaware issued a preliminary injunction delaying a shareholder vote, originally scheduled for March 7, 2011, on Qualcomm Incorporated's proposed acquisition of Atheros Communications, Inc. ("ATHR") for approximately $3.1 billion. The plaintiffs alleged, among other things, that Atheros' preliminary proxy statement was materially misleading to the company's shareholders, which are responsible for voting on the proposed acquisition. In its opinion, the Court of Chancery held that Atheros' proxy statement was materially misleading and Atheros failed to inform its shareholders of an almost entirely contingent $24 million fee to the company's financial adviser, Qatalyst Partners, LLP.
Motley Rice securities lawyer William Norton said decisions like this help support and protect investors, "This is an excellent result for Atheros shareholders, who now have additional information and time to consider whether to vote their shares in favor of the company's merger with Qualcomm. Moreover, we believe that these lawsuits play an important role in guaranteeing the rights of shareholders of public companies."
On Monday, March 7, 2011, Atheros released additional proxy disclosures, which are now available to shareholders at the U.S. Securities and Exchange Commission's website. The shareholder vote on the proposed acquisition is scheduled for Friday, March 18, 2011.
To learn more about In re Atheros Communications Inc. Shareholder Litigation, C.A. No. 6124-VCN or other shareholder cases, contact Motley Rice securities attorneys Joshua C. Littlejohn (SC) or;\ William S. Norton (MA, NY, SC) at 1.800.768.4026 .
Read more about this deal litigation from The New York Times, Bloomberg, The Wall Street Journal, The New York Times DealBook and The American Lawyer.
This is not a solicitation of a proxy from any security holder of Atheros Communications, Inc. or a substitute for the proxy statement filed by Atheros Communications, Inc. with the SEC. Do not send your proxies to Motley Rice LLC. Executed proxy cards should be returned according to instructions provided by Atheros Communications, Inc.