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Broadcom investors fight back over $37bn Avago takeover
Class action alleges players were 'misled'
Investors of networking biz Broadcom have launched a class action lawsuit to block a $37bn (£24bn) takeover by chip maker Avago.
In May the companies announced the mega merger, which will value the new entity at $77bn (£50bn). The deal is planned to close by the end of March 2016.
The law firm acting on the investors' behalf alleges some of Broadcom's defendants breached their fiduciary duties of loyalty and due care owed to Broadcom shareholders.
It claims they filed a "materially false and misleading registration statement" on Form S-4 with the US Securities and Exchange Commission in an attempt to secure shareholder approval of the takeover.
"The omitted and/or misrepresented information is believed to be material to Broadcom shareholders' ability to make an informed decision whether to approve the Proposed Transaction," said Weiss Law.
The complaint arises out of a 28 May 2015 press release announcing that Broadcom had entered into a definitive merger agreement with Avago Technologies Limited, "pursuant to which Broadcom shareholders will receive $54.50 in cash and 0.4378 of an Avago share".
The complaint seeks injunctive relief on behalf of the named plaintiffs and all other similarly situated shareholders of Broadcom as of 28 May, 2015.
The Register has contacted Avago for a comment. ®