Silicon Storage Technology Merger Litigation (Nasdaq: SSTI)
Law Office of Brodsky & Smith, LLC Announces Investigation on Behalf of Shareholders of Silicon Storage Technology, Inc.
BALA CYNWYD – (BUSINESS WIRE) Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of Silicon Storage Technology, Inc. (“Silicon Storage” or the “Company”) (Nasdaq:SSTI – News) related 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 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 the company 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, the Company 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 2nd quarter of 2010.
If you are a Silicon Storage shareholder and wish to discuss the legal ramifications of the Board’s actions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact Jason L. Brodsky, Esquire or Marc L. Ackerman, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by e-mail at firstname.lastname@example.org, or by calling toll free 877-LEGAL-90.
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