SOURCE: Milberg LLP

November 17, 2009 11:16 ET

Milberg LLP Announces the Filing of a Shareholder Class Action Lawsuit Challenging the Proposal to Privatize Silicon Storage Technology, Inc. -- SSTI

NEW YORK, NY--(Marketwire - November 17, 2009) - The law firm of Milberg LLP has filed a shareholder class action lawsuit in the Superior Court of the State of California, County of Santa Clara on behalf of a shareholder of Silicon Storage Technology, Inc. ("Silicon Storage" or the "Company") (NASDAQ: SSTI) against Silicon Storage, the Company's Board of Directors (the "Board"), Prophet Equity LLC ("Prophet"), and Technology Resource Holdings, Inc. ("TRH"), a wholly owned subsidiary of Prophet. Silicon Storage produces and sells semiconductor products, and various products based on its "SuperFlash" design and manufacturing process technology. The action is captioned Fisher v. Silicon Storage Technology, Inc., et al., and is numbered 1-09-CV-157444. The complaint can be obtained from the Court or viewed on Milberg LLP's website www.milberg.com.

The complaint, filed on November 16, 2009, alleges breaches of fiduciary duty, unjust enrichment and violations of state laws relating to the proposed going-private deal announced on November 13, 2009, in which Silicon Technology agreed to have TRH acquire all of the Company's outstanding shares for $2.10 per share in cash, with the exception of the shares held by Bing Yeh, Chairman of the Company's Board and Chief Executive Officer, and Yaw Wen Hu, the Company's Chief Operating Officer and a Member of the Company's Board, whose shares will convert into an equity stake in the surviving private entity.

According to the complaint, the members of the Company's Board breached their fiduciary duties by approving the management-led acquisition of Silicon Storage by private equity buyers TRH and Prophet for inadequate consideration and under circumstances unfair to public Silicon Storage shareholders. Among other allegations, the complaint alleges that the Company's Board suffers from significant conflicts of interests because the Merger Agreement provides for the continuation of SST's current management (including Messrs. Yeh and Hu) and directorship with the surviving entity and that unlike public shareholders certain members of management will continue to own a stake in SST's growing business.

The complaint has been filed as a class action on behalf of all persons who own Silicon Storage common stock. No class has yet been certified, and there can be no guarantee that a class will be certified.

If you have any questions you may contact the attorneys listed below:

About Milberg

Milberg LLP has been representing individual and institutional investors for over 40 years and serves as lead counsel in federal and state courts throughout the United States. Please visit the Milberg website (http://www.milberg.com) for more information about the firm.

Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.

Contact Information

  • Milberg LLP (New York)
    Andrei Rado, Esq.
    Anne Marie Vu, Esq.
    One Pennsylvania Plaza, 49th Floor
    New York, NY 10119

    Milberg LLP (California)
    Jeff Westerman, Esq.
    300 South Grand Avenue, Suite 3900
    Los Angeles, CA 90071

    Phone number: (800) 320-5081
    Email: contactus@milberg.com