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If you are a current long-term stockholder of shares of Emulex Corporation (NYSE:ELX), including those who current hold NYSE:ELX shares since years, you have certain options and you should contact the Shareholders Foundation, Inc.
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To have your information reviewed for options and to receive notifications about this investigation, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Investigation Overview
Oct. 16, 2012 (Shareholders Foundation) -- An investigation on behalf of current long-term stockholders of shares of Emulex Corporation (NYSE:ELX) was announced concerning whether certain Emulex officers and directors possibly breached their fiduciary duties in connection with certain statements.
The investigation by a law firm concerns whether certain Emulex officers and directors breached their fiduciary duties in connection with their conduct in seeking shareholders approval of executive compensation and an amendment to Emulexs Equity Incentive Plan.
in the Proxy Statement filed by Emulex Corporation with the SEC, the Board of Directors recommends that Emulexs shareholders vote to approve an amendment to Emulex 2005 Equity Incentive Plan to increase the number of shares that may be issued under Emulex 2005 Equity Incentive Plan by an additional 1,500,000 shares.
According to the investigation the issuance of the additional shares could have a severe dilutive effect on the shares of Emulex Corporation common stock.
Emulex Corporation (NYSE:ELX) reported that its Total Revenue rose from $399.15 million for the 52 week period that ended on June 27, 2010 to $501.77 million for the 52 week period that ended on July 1, 2012. While Emulex Corporation (NYSE:ELX) was able to lower its Net Loss from $83.61 million for the 52 weeks period that ended on July 3, 2011 to $11.08 million for the 52 weeks period that ended on July 1, 2012, its shares declined from as high as $140.4 per share in March 2010 to as low as $6.22 per share in July 2012.
