Symbol Gets Sued
The Holtsville, N.Y.-based company put out a statement on Friday saying that "putative class action lawsuits have been filed against the company in state court." The company did not disclose how many lawsuits have been filed or what number of shareholders are involved. (See Shareholders Sue Symbol.)
The lawsuits seek to prevent the acquisition of Symbol by Motorola. (See Motorola Confirms Symbol Buyout.) Symbol says it believes that the suits are "entirely without merit and intends to vigorously defend against the claims."
A spokesperson for Symbol says that the firm cannot comment further on the legal cases, after Unstrung asked for further details on the suits.
No details are yet available on why the shareholders have brought the lawsuits. Before the buyout, some analysts had suggested that Symbol could be worth more than the $3.9 billion in cash that Motorola is putting up. (See Symbol Plants For-Sale Sign.) Some valued the company at $6 billion and up. There is no confirmation yet, however, that this is the motivation for the legal action. Nonetheless, investor message boards are buzzing with talk of a possible higher counterbid in the works.
The Motorola buyout is due to be completed by the end of this year. We'll have more details on this as they come in.
— Dan Jones, Site Editor, Unstrung