The Shareholders Foundation announces that an investor, who currently holds shares of Fusion-IO, Inc. (NYSE:FIO) filed a lawsuit in effort to halt the takeover of Fusion-IO, Inc. by SanDisk Corporation.
Investors who purchased in excess of 20,000 shares of Fusion-IO, Inc. (NYSE:FIO) and currently hold any of those NYSE:FIO shares have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 – 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:FIO stockholders by agreeing to sell Fusion-IO, Inc too cheaply via an unfair process to SanDisk Corporation.
On June 16, 2014 SanDisk Corporation (NASDAQ: SNDK) announced an agreement to acquire Fusion-io (NYSE: FIO). The acquisition will be an all-cash transaction valued at approximately $1.1 billion, net of cash assumed. Under the terms of the agreement, SanDisk will commence a tender offer for all outstanding shares of Fusion-io for $11.25 per share in cash.
However, the plaintiff claims that the offer is too low and undervalues Fusion-IO, Inc. Indeed, at least one analyst has set the high target price for NYSE:FIO shares at $16.00 per share. Furthermore, NYSE:FIO shares traded as high as $12.27 per share as recently as March 2014 and reached over $22 per share in early 2013. In addition, Fusion-IO, Inc. reported that its Total Revenue rose from $197.20 million for the 12 months period that ended on June 30, 2011 to $432.39 million for the 12 months period that ended on June 30, 2013.
On June 30, 2014, NYSE:FIO shares closed at $11.30 per share.
Those who are current investors in Fusion-IO, Inc. (NYSE:FIO) shares have certain options and should contact the Shareholders Foundation.
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