Two class-action lawsuits have been filed in Georgia state court against Scientific-Atlanta, related to its acquisition by Cisco Systems.
S.A. says that the suits claim the company's directors and officers breached their fiduciary duty to its shareholders by selling for a little under $7 billion. Late Wednesday, S.A said the complaints were without merit and that it will defend the actions vigorously.
“The board of directors of Scientific-Atlanta engaged in a thorough and deliberative process to obtain the best transaction at the highest price available for its shareholders, culminating in the definitive merger agreement with Cisco, which was announced on November 18,” said S.A. in a statement.
“As previously announced, Cisco is acquiring Scientific-Atlanta for $43 per share in cash in exchange for each share of Scientific-Atlanta, for an aggregate purchase price of approximately $6.9 billion.”