Emulex intensified its battle against a $764m takeover bid from Broadcom alleging in a lawsuit that Broadcom can not be trusted as it has not fully disclosed details of the option-backdating and drug-related charges involving its former chief executive Henry T. Nicholas III.
The company recently filed a lawsuit in Orange County Superior Court in California and cautioned shareholders to be wary of Broadcom’s efforts to acquire the company.
The lawsuit says that It is material for stockholders and employees of Emulex to understand that they are not dealing with an honest enterprise. The suit asks for an injunction against Broadcom to prevent fraud and irreparable injury that would result from being taken over by a company, that reportedly, hasn’t disclosed everything about its troubled past.
However, Broadcom’s spokesman denied the charges and informed in a statement that none of the historical claims in this suit is relevant to the company’s $9.25 all-cash bid for Emulex.
