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Magma Design Automation, Inc. Investor Files Lawsuit To Stop Takeover

  • If you are a current investor in Magma Design Automation, Inc. (NASDAQ:LAVA) and purchased your NASDAQ:LAVA shares prior to the announcement, and/or those who have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Company
Magma Design Automation, Inc.
Security
NASDAQ: LAVA

Case Name
Magma Design Automation Deal Case 12/06/2011
Type of Lawsuit
Mergers and Acquisition
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Summary

San Diego, Dec. 6, 2011 (Shareholders Foundation) -- An investor in NASDAQ:LAVA shares filed a lawsuit in effort to block the proposed takeover of Magma Design Automation by Synopsys, Inc for $7.35 per share.
According to the complaint the plaintiff alleges that the defendants breached their fiduciary duties owed Magma Design Automation, Inc. (LAVA) investors arising out of the attempt to sell Magma Design Automation at an unfair price via an unfair process.

On Nov. 30, 2011, after the market closed, Synopsys, Inc. (Nasdaq: SNPS) announced that it has signed an agreement to acquire Magma® Design Automation Inc. (Nasdaq: LAVA). Under the terms of the proposed transaction Synopsys Inc will acquire Magma Design Automation for $7.35 per NASDAQ: LAVA share in cash, resulting in a transaction value of approximately $507 million net of cash and debt acquired.

Following the takeover news NASDAQ:LAVA stocks jumped the next trading day to $7.16 per share.

However, the plaintiff alleges that the $.7.35 per share offer undervalues Magma Design Automation. In fact, NASDAQ: LAVA shares traded as recently as July as high as $8.45 per share, thus well above the current offer. In addition, at least on analyst has set the high target price for NASDAQ:LAVA stocks at 11.00.