Key Developments For Silicon Storage Technology Inc
Silicon Storage Technology Inc (SSTI.O) (Consolidated Issue listed on NASDAQ Global Market)
Law Offices of Brian M. Felgoise, P.C. Announces Investigation Of Silicon Storage Technology, Inc.
The Law Offices of Brian M. Felgoise, P.C. announced an investigation of potential claims against the Board of Directors of Silicon Storage Technology, Inc., relating to the transaction to take the Company private by Technology Resource Holdings, Inc., a Prophet Equity LP-controlled entity, as well as by members of Silicon Storage`s management team. The investigation is focused on whether the proposed deal provides adequate value to The Company`s shareholders.
Milberg LLP Announces Filing of Shareholder Class Action Lawsuit Challenging Proposal to Privatize Silicon Storage Technology, Inc. (SST)
The law firm of Milberg LLP announced that it has filed a shareholder class action lawsuit in the Superior Court of the State of California, County of Santa Clara on behalf of a shareholder of Silicon Storage Technology, Inc. against Silicon Storage, the Company's Board of Directors (the Board), Prophet Equity LLC, and Technology Resource Holdings, Inc. (TRH), a wholly owned subsidiary of Prophet. The complaint, filed on November 16, 2009, alleges breaches of fiduciary duty, unjust enrichment and violations of state laws relating to the proposed going-private deal announced on November 13, 2009, in which Silicon Technology agreed to have TRH acquire all of the Company's outstanding shares for $2.10 per share in cash, with the exception of the shares held by Bing Yeh, Chairman of the Company's Board and Chief Executive Officer, and Yaw Wen Hu, the Company's Chief Operating Officer and a Member of the Company's Board, whose shares will convert into an equity stake in the surviving private entity. According to the complaint, the members of the Company's Board breached their fiduciary duties by approving the management-led acquisition of Silicon Storage by private equity buyers TRH and Prophet for inadequate consideration and under circumstances unfair to public Silicon Storage shareholders.
Law Office of Brodsky & Smith, LLC Announces Investigation On Behalf of Shareholders of Silicon Storage Technology, Inc. (SST)
Law office of Brodsky & Smith, LLC announced that it is investigating potential claims against the Board of Directors of Silicon Storage Technology, Inc. (SST) related to the transaction to take Silicon Storage private by Technology Resource Holdings, Inc., a Prophet Equity LP-controlled entity, as well as by members of Silicon Storage's management team. The deal is valued at approximately $200 million. Under the terms of the transaction Prophet Equity LP will pay Silicon Storage shareholders $2.10 for each share they own in an effort to acquire all of the outstanding common stock of Silicon Storage except for shares held by Bing Yeh, Silicon Storage's Chairman and Chief Executive Officer, and Yaw Wen Hu, Silicon Storage's Executive Vice President and Chief Operating Officer and member of the Board of Directors, who have agreed to exchange all of their shares of Silicon Storage common stock for shares of capital stock of the resulting privately held company. The investigations concerns whether the board breached their fiduciary duties given that Silicon Storage stock traded at $2.53 as recently as October 9, 2009 and on September 29, 2009, Silicon Storage raised its third-quarter earnings and revenue forecast helped by improving sales and lower-than-expected costs. The agreement does contain a go-shop provision that allows the Board's Strategic Committee to seek offers for 45 days after the announcement. The deal is expected to close in the second quarter of 2010.
Levi & Korsinsky, LLP Investigates Possible Breach of Fiduciary Duty By Silicon Storage Technology, Inc. (SST)
Levi & Silicon Storage Technology, Inc. (SST) announced that Korsinsky is investigating the Board of Directors of the Company for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Profit Equity LP, a private equity firm, and certain members of the Company's management team. Under the terms of the transaction, the Company's shareholders will receive $2.10 in cash for each share of the Company they own for a total transaction value of approximately $201 million.
Stull, Stull & Brody Announces Investigation on Behalf of Shareholders of Silicon Storage Technology, Inc. (SST)
Stull, Stull & Brody announced that it has commenced an investigation on behalf of shareholders of Silicon Storage Technology, Inc. for possible breaches of fiduciary duty and other violations of state law in connection with an agreement by Silicon Storage's Board of Directors to sell all of the Company's outstanding shares of common stock, except for shares held by the Company's Chairman and Chief Executive Officer (CEO) and its Chief Operating Officer (COO), at a price of approximately $2.10 per share in cash and to certain members of Silicon Storage's management team together with Technology Resource Holdings, Inc., which is controlled by Prophet Equity LP. The investigation concerns the price to be paid to Silicon Storage shareholders and the process by which the Company's Board is addressing the transaction. The Company's Chairman and CEO, and its COO have agreed to vote their shares in favor of the proposed merger and against any other acquisition proposals and, under the terms of the proposed transaction, would receive shares of the resulting privately-held company in exchange for their currently-held shares of Silicon Storage. Given that Silicon Storage's common stock was trading at $2.58 per share as recently as October 15, 2009, Stull, Stull & Brody is investigating whether the Company's Board of Directors has acted in the best interest of the Company's shareholders and whether the Board has breached its fiduciary duties owed to the Company's shareholders.
