March 28, 2017 (Shareholders Foundation) - An investor who currently holds shares of GigPeak Inc (NYSEMKT:GIG), filed a lawsuit in effort to halt the proposed takeover of GigPeak Inc., formerly GigOptix, Inc, by Integrated Device Technology, Inc.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSEMKT:GIG stockholders by agreeing to sell GigPeak Inc too cheaply via an unfair process to Integrated Device Technology, Inc.

On February 13, 2017, Integrated Device Technology, Inc. (NASDAQ:IDTI) and GigPeak Inc (NYSEMKT: GIG) announced that they have signed an agreement for Integrated Device Technology, Inc to acquire GigPeak, Inc., for total cash consideration of $3.08 per share, or approximately $250 million in cash.

However, plaintiff claims that the proposed consideration NYSEMKT: GIG shareholders will receive is grossly inadequate and undervalues GigPeak Inc. Indeed, least one analyst has set the high target price for NYSEMKT: GIG shares at $3.50 per share and NYSEMKT: GIG shares traded in 2015 as high as $3.20 per share. Furthermore, GigPeak Inc reported that its annual Total Revenue rose from $32.95 million in 2014 to $58.74 million in 2016 and that its Net Loss of $5.82 million in 2014 turned into a Net Income of $2.23 million in 2016. In addition, the plaintiff alleges that the process is also unfair to NYSEMKT:GIG stockholders