Contact Information: Contact: Gerald H. Silk BLB&G (212) 554-1400 jerry@blbglaw.com Jay W. Eisenhofer G&E (646) 722-8500 jeisenhofer@gelaw.com
Institutional Shareholder Files Lawsuit Against Directors of Data Domain, Inc., Announces Bernstein Litowitz Berger & Grossmann LLP and Grant & Eisenhofer, P.A.
NEW YORK, NY--(Marketwire - June 15, 2009) - Shareholder Rights Law Firms Bernstein
Litowitz Berger & Grossmann LLP ("BLB&G") and Grant & Eisenhofer, P.A.
("G&E") today announced the filing of a shareholder class action lawsuit
against members of the board of directors of Data Domain, Inc. (NASDAQ : DDUP ) ("Data Domain" or the "Company"), and NetApp Inc. (NASDAQ : NTAP ) and
its acquisition entities (collectively "NetApp") on behalf of the Police &
Fire Retirement System of the City of Detroit ("Detroit P&F") and similarly
situated shareholders of Data Domain. The lawsuit, which was filed on
Friday, June 12, 2009 in the Court of Chancery in the State of Delaware, is
captioned Police & Fire Retirement System of the City of Detroit v. Bernal,
C.A. No. 4663-VCL.
The lawsuit alleges that the members of the Board of Directors of Data
Domain (the "Board") are breaching their fiduciary duties to their
shareholders by refusing to negotiate with a potential acquirer, EMC
Corporation ("EMC"), and for agreeing to sell Data Domain to NetApp without
taking any steps to maximize the price paid to Data Domain's shareholders.
On May 20, 2009, just days after EMC privately disclosed its desire to
acquire Data Domain, NetApp agreed to an Agreement and Plan of Merger,
allowing NetApp to acquire Data Domain for $25 per share in a mix of cash
and stock. On June 1, 2009, EMC launched a competing proposal to acquire
Data Domain in a $30 per share all-cash deal. Shortly thereafter, NetApp
increased its bid to $30, comprised of the same amount of stock and an
increased percentage of cash, which the Data Domain Board immediately
approved.
According to the lawsuit, Data Domain's Board of Directors violated their
fiduciary duties by approving the original and the restructured deals with
NetApp, both of which give NetApp an improper bidding advantage in the form
of a termination fee, a no-shop/no-talk provision and matching rights. The
Board granted each of these deal protections before any value-maximizing
process took place, in a blatant effort to ensure that their favored merger
partner is Data Domain's ultimate acquirer. The lawsuit seeks to enjoin
the revised NetApp transaction "until such time as the Data Domain
Directors have fully complied with their fiduciary duties and taken all
readily available steps to maximize shareholder value."
Today, following the filing of the lawsuit, Data Domain's Board announced
that it has recommended that Data Domain shareholders reject the $30 per
share EMC offer and vote in favor of the revised merger agreement with
NetApp that the plaintiffs seek to enjoin. Detroit P&F and its counsel
intend to vigorously prosecute the claims in the lawsuit in order to
protect shareholders' rights and obtain the best possible consideration for
their shares, without favoring one bidder over another.
If you wish to discuss this action or have any questions concerning your
rights or interests, please contact plaintiffs' counsel Gerald H. Silk of
BLB&G at (212) 554-1400, or via email at jerry@blbglaw.com, or Jay W.
Eisenhofer of G&E at (646) 722-8500, or via email at jeisenhofer@gelaw.com.
More information about BLB&G and G&E can be found online at www.blbglaw.com
and www.gelaw.com.