Thursday, October 7, 2010
Occam Networks Sued By Shareholders
A group of shareholders of Occam Networks, which is in the midst of an acquisition by competitor Calix, is suing the firm over the buy. The shareholder group, which says its owns approximately 19% of the firm's stock, claims Occam's Board of Directors breached their fiduciary duty in the sale, calling the price paid for Occam dramatically under-values the firm. Calix said it would buy Occam in September for $171M in cash and stock. The shareholders--which include Michael H. Steinhardt, Herbert Chen, Derek Sheeler, Steinhardt Overseas Management, L.P. and Ilex Partners, L.L.C.--are being represented by Levi & Korsinsky, LLP in the suite. Among issues those shareholders cite are a lack of any attempt to shop the deal with others; no "go-shop" period or deal protection devices for superior proposals; and an upsurge expected in Occam's business due to recent, broadband stimulus awards by the Obama administration.