A lawsuit was filed for investors in shares of Oclaro, Inc. (NASDAQ: OCLR) in connection with the proposed takeover and NASDAQ: OCLR stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 06/05/2018 -- The Shareholders Foundation announces that an investor, who currently holds shares of Oclaro, Inc. (NASDAQ: OCLR), filed a lawsuit against the takeover of Oclaro, Inc. by Lumentum Holdings Inc for a value of approximately $9.99 per share.
Investors who purchased shares of Oclaro, Inc. (OCLR) and currently hold any of those NASDAQ: OCLR shares have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ: OCLR stockholders by agreeing to sell Oclaro, Inc cheaply via an unfair process.
On March 12, 2018, Lumentum Holdings Inc. and Oclaro, Inc. announced that the two companies have signed a definitive agreement, unanimously approved by the boards of directors of both companies, pursuant to which Lumentum will acquire all of the outstanding common stock of Oclaro. For each share of Oclaro stock held, Oclaro stockholders will be entitled to receive $5.60 in cash and 0.0636 of a share of Lumentum common stock, subject to the terms of the definitive agreement. The transaction values Oclaro at $9.99 per share or approximately $1.8 billionin equity value, based on the closing price of Lumentum's stock on March 9, 2018, of $68.98.
However, the plaintiff claims that the proposed consideration NASDAQ:OCLR shareholders will receive is grossly inadequate and undervalues Oclaro, Inc. Indeed, at least one analyst has set the high price target for NASDAQ:OCLR at $12.00 per share. Oclaro, Inc. reported that its annual Total Revenue rose from $407.91 million to $600.96 million in 2017 and that its Net Income increased from $8.58 million in 2016 to $127.85 million in 2017.
In addition, the plaintiff alleges that the process is also unfair NASDAQ:OCLR stockholders. The plaintiff claims that the defendants agreed to preclusive deal protection provisions, such as a up to $63 million termination fee, no solicitation, and matching rights provision, that deter other bidders from making a superior offer for Oclaro and ensure a sale to Lumentum Holdings Inc
Those who are current investors in Oclaro, Inc. (OCLR) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
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