May 02, 2016 (Shareholders Foundation) - An investor who currently holds shares of Alliance Fiber Optic Products Inc (NASDAQ:AFOP), filed a lawsuit in effort to halt the proposed takeover of Alliance Fiber Optic Products Inc. by for $18.50 per share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:AFOP stockholders by agreeing to sell Alliance Fiber Optic Products Inc too cheaply via an unfair process to Corning Incorporated

On April 7, 2016, Corning Incorporated and Alliance Fiber Optic Products Inc (NASDAQ:AFOP) announced that they have entered into a merger agreement under which Corning will acquire Alliance Fiber Optic Products, Inc. Under terms of the agreement, Corning will make an all-cash tender offer to acquire all of the outstanding common shares of Alliance Fiber Optic Products Inc (NASDAQ:AFOP) for $18.50 per share, representing a transaction value of approximately $305 million.

However, plaintiff claims that the proposed consideration NASDAQ:AFOP shareholders will receive is grossly inadequate and undervalues Alliance Fiber Optic Products Inc. Indeed, at least one analyst has set the high target price for NASDAQ:AFOP shares at $20.00 per share and NASDAQ:AFOP shares reached as high as $21.16 per share in the open market in July 2015. In addition, the plaintiff alleges that the process is also unfair to Alliance Fiber Optic Products Inc stockholders.